The convertible peso (sometimes given as CUC$) (informally called a cuc' or "chavito"'), is one of two official currencies in Cuba, the other being the peso. It has been in limited use since 1994, when it was treated as equivalent to the U.S. dollar: its value was officially US$1.00. On 8 November 2004, the U.S. dollar ceased to be accepted in Cuban retail outlets leaving the convertible peso as the only currency in circulation in many Cuban businesses. Officially exchangeable only within the country, its value was increased to US$1.08 on 5 April 2008, and reverted to US$1.00 on 15 March 2011.1 The convertible peso is, by the pegged rate, the twelfth-highest-valued currency unit in the world and the highest valued "peso" unit.
On 22 October 2013, it was announced that the currency is to be scrapped by gradually unifying it with the lower value Cuban peso.2
From 1993 until 2004, the Cuban currency was split between the Cuban peso (the currency Cuban citizens are paid in and used for staples and non-luxury items) and the U.S. dollar in combination with the convertible peso, which was a foreign exchange certificate (in use since at least 19853) used for tourism and for luxury items.citation needed The Cuban peso (CUP) can be exchanged to the convertible peso (CUC) at the exchange offices (CADECA), at a fixed rate of 24 CUP to 1 CUC (sell) and 25 CUP to 1 CUC (buy);1 however, for state household book-keeping purposes, both pesos are valued at a 1:1 rate.1
On 8 November 2004, the Cuban government withdrew the U.S. dollar from circulation citing the need to retaliate against further U.S. sanctions.4 After a grace period ending on November 14, 2004, a 10% surcharge began to be imposed when converting U.S. dollars into convertible pesos. The change was announced some weeks beforehand and was extended by the aforementioned grace period (it has been claimed this was because the amounts of US dollars being exchanged were more than anticipated).citation needed This measure helped the Cuban government collect hard currency.citation needed
In 1994, coins were introduced in denominations of 5, 10, 25 and 50 centavos, and 1 peso. 5 pesos (rarely seen) was introduced in 1999, followed by 1 centavo coins in 2000.
In 1994, the Banco Central de Cuba introduced notes in denominations of 1, 3, 5, 10, 20, 50 and 100 pesos. On December 18, 2006, the Banco Central de Cuba introduced a new series of notes themed to "Socialist History and Achievements". The front of the notes are similar to its previous series, but on the back of the notes, instead of depicting the Cuban coat of arms on all denominations, each of the notes now have individualized designs.5