In this special Cuba: Closer Than You Think report, Valarie D’Elia shares some basics of exchanging and spending money in Cuba.
Cuba has a split personality when it comes to money.
"We have two currencies: CUC - that's the money tourists need to pay everywhere they visit; and the Cuban pesos - that's the money that we, Cubans use," says Cuban tour guide Ilina Ferriol.
The CUC, the Convertible Cuban Peso, cannot be obtained outside the country, so Americans must change their greenbacks when they arrive.
"You need to go to a CADECA, a changing place and go to hotel, but you need to change. You cannot pay in dollars," says Ferriol.
The CUC is equivalent to the U.S. dollar in value, but Cuba levies a 10 percent surcharge on U.S. transactions, sometimes on top of an extra 3 percent exchange fee. Therefore, Americans might benefit by changing their money first into something like Canadian dollars, Mexican pesos or Euros first as a way to get around the surcharge.
It is also possible to buy some of the cheaper pesos the Cubans use, for taxi rides and street food. Cubans however, prefer to be tipped in CUC’s. Word is that as part of ongoing economic reforms, Cuba will be transitioning to one currency.
Under the loosened restrictions on travel, Americans can now bring home $100 worth of Cuban cigars and rum, part of an increased $400 limit on souvenirs.
At this point, you need to have a stash of cash with you, because U.S. credit cards are not yet accepted. That should change now that President Obama has announced his intentions to remove Cuba from the list of state sponsors of terrorism.
Also, consider bringing small gifts along for the Cuban people, such as personal hygiene products that are hard to get, and children's books.