An independent business owner in Havana recently refused to accept five-peso bills for a purchase, insisting that only 100 CUP denominations or higher were acceptable, despite all bills being legally recognized as tender.
This incident unfolded at a sales point located on Vento Avenue and Railway Line in the Miraflores Nuevo neighborhood, Boyeros municipality. The report was highlighted by journalist Carlos Manuel Serpa in the official newspaper, Tribuna de La Habana. Serpa attempted to buy a nylon bag priced at 20 CUP using a 10 CUP bill and two five CUP bills.
According to Serpa, the attendant stated that lower denomination bills were not accepted.
This situation reflects a growing trend in private commerce, where not only are bank transfers rejected, but certain cash denominations are also dismissed, even though they are legally obtained from ATMs within the banking system.
Sellers justify this behavior by claiming that small and medium-sized enterprises (SMEs) do not accept small bills, creating a chain of excuses that ultimately shifts the burden onto consumers, forcing them to adapt to informal and arbitrary rules.
"It's time to put an end to these violative practices. I informed the TCP attendant that I am a journalist and that I intended to clarify this violation of refusing certain cash in national currency. We all must demand adherence to our laws and ensure businesses comply with established regulations," emphasized the journalist.
Rejecting five CUP bills directly conflicts with the Central Bank of Cuba's regulations, which recognize all circulating denominations as valid.
However, in practice, the lack of oversight and enforcement allows these violations to persist without visible repercussions.
This case reignites the debate over to what extent independent entrepreneurs and SMEs are replacing official regulations with their own rules, in a context marked by cash shortages, long queues for withdrawing money, and an increasingly dysfunctional payment system for the population.
Inflation in Cuba has severely diminished the purchasing power of its people, causing prices of basic goods to rise while wages remain stagnant.
This has led to difficulties in acquiring food and other essential items.
The devaluation of the Cuban peso against the dollar has given rise to unusual situations, such as a recent incident highlighted by a young person on social media who showed the outcome of exchanging 100 dollars on the island: five bags filled with Cuban peso bills.
Simultaneously, the national banking system faces criticism for imposing unreasonable withdrawal limits, account blockages, and delays in transfers.
These restrictions are perceived as a form of state control that hinders people's access to their own money, particularly amid the economic crisis and cash scarcity on the island.
Understanding Cash Denomination Practices in Cuba
Why are some businesses in Cuba rejecting low denomination bills?
Some businesses claim that small and medium-sized enterprises do not accept these bills, leading to a chain of informal practices that consumers must navigate.
What impact does the rejection of certain bills have on consumers?
Consumers are forced to comply with non-official rules, which complicates transactions and places additional burdens on them in an already challenging economic environment.
How does the Central Bank of Cuba view the use of all bill denominations?
The Central Bank of Cuba recognizes all circulating bill denominations as valid legal tender, meaning that businesses should accept them in transactions.