A resident of Holguín has raised concerns after being turned away from a private business on 13th Street for attempting to pay with 20 Cuban peso bills.
On Facebook, Luis Mario González shared his experience of waiting in a long line to pay 18,000 pesos, only to have the establishment refuse 300 pesos in 20 CUP bills. This denomination, although legal tender, is increasingly being rejected by merchants across the Island.
"I'm trying to pay 18,000 pesos, brought 300 in 20s, and they wouldn't take them. I mean, you're paying 18,000...," González expressed in a video, visibly upset.
The Holguín resident is demanding concrete action: that private businesses refusing small denominations post a sign at the entrance, so customers don't waste their time in line.
"It's frustrating. You wait in line, and for 300 pesos in 20s, they won't sell to you. You give everything: 1,000s, 500s... there's no blockade there," he remarked, frustrated by the rampant inflation that primarily affects those with the least.
González is particularly pained by the fact that the situation can't be blamed on external excuses: "This isn't about the blockade. Cubans are turning on each other."
Widespread Rejection of Smaller Denominations
González's case is not unique. In July, private businesses in Santiago de Cuba stopped accepting 1, 5, 10, and 20 peso bills. Another Holguín resident made a similar complaint in August when no one would accept five peso bills.
Legal Implications and Official Stance
The practice is illegal. In July, Banco de Crédito y Comercio (BANDEC) warned that refusing low-denomination bills violates Central Bank of Cuba regulations, as all bills in circulation are considered legal tender. Despite repeated warnings in August, no specific penalties have been imposed on any business, allowing the practice to continue unchecked.
The populace feels abandoned. In July, a Cuban reported receiving his entire salary in five peso bills, a trap that disproportionately affects low-income workers. The bank's justification was a lack of larger denominations for payment.
Economic Context and Inflation Woes
The monetary situation exacerbates the issue. The official annual inflation rate reached 25.19% in August, according to the National Office of Statistics and Information (ONEI). Meanwhile, the dollar's value has soared in the informal market, surpassing 700 pesos. The 20 peso bills, once used for everyday purchases, now hold little real value, leading merchants to view them as a burden.
This week, the Central Bank of Cuba (BCC) announced the introduction of two new bill denominations: 10,000 and 20,000 Cuban pesos. The institution's president, Juana Lilia Delgado Portal, justified the issuance as necessary to "adjust existing denominations to the economic situation, particularly price conditions and monetary circulation needs."
As the government issues increasingly higher denominations, citizens remain unable to use the small bills they receive as wages.
Impact of Currency Denominations on Cuban Economy
Why are Cuban businesses rejecting smaller denomination bills?
Businesses in Cuba are increasingly rejecting smaller denomination bills like the 20 peso note due to their diminished purchasing power and the logistical burden of handling large quantities of such bills.
What is the legal stance on refusing legal tender in Cuba?
Refusing to accept any legal tender, including small denomination bills, is illegal in Cuba. The Central Bank of Cuba mandates that all bills in circulation have full legal tender status, and refusal to accept them violates this regulation.