A Cuban woman named Lara Calm recently took to Facebook to express her frustration when a local business refused to accept her 50-peso Cuban bills (CUP) while attempting to buy rice. Her experience highlights a growing monetary crisis where larger denominations are increasingly rejected.
"I tried to pay with 50-peso bills, only to be told I could only use 500 pesos worth of them," she shared, illustrating how the business imposed a limit on the amount accepted in that denomination, effectively restricting its use as regular currency.
The Growing Rejection of Cuban Currency
Lara Calm revealed that she had already faced similar issues with 10 and 20-peso bills, which many businesses have been refusing for months. Now, the problem has escalated to include the 50-peso notes.
"What am I supposed to do with my 50-peso bills now? [...] Am I supposed to eat them?" she questioned in disbelief, encapsulating the absurdity of holding legal tender that many establishments won't accept.
The video has garnered over 11,000 views and 170 comments, with many expressing criticism and frustration over the situation.
Public Outcry and Demand for Accountability
The comments on social media reflect widespread discontent among Cubans facing similar situations. "Having money and not being able to use it is like not having any at all," one commenter noted.
Others directly blamed the government: "It's the government's fault for allowing this," and "This is what happens when they print money without control."
Reports suggest that even 100-peso bills are now being rejected in various areas, with one user remarking, "Every day, it gets harder for the people."
A Long-Standing Issue
The predicament highlighted by Lara Calm is not unique. In December 2024, a retiree complained that the business "El Moro" in Alamar limited payments to 300 pesos in 10 and 20 CUP bills, while her pension was only 1,600 pesos monthly.
A year later, a self-employed worker in Boyeros refused 5 CUP bills, demanding 100-peso notes or higher.
In April, a viral video showed a Cuban receiving over 200,000 pesos in 10-peso bills — equivalent to about 384 dollars at the time — a stark illustration of the Cuban currency's dwindling purchasing power.
By September, new reports from Holguín confirmed the persistence of this practice despite official warnings.
Official Warnings Ignored
The Bank of Credit and Commerce (BANDEC) of Ciego de Ávila issued an official statement in July, condemning the refusal of low-denomination bills as a "blatant violation of citizens' rights" and reminding businesses that no economic entity can choose which denominations of official currency to accept.
Authorities have warned that refusing legal tender is an infraction that can lead to administrative and legal actions. However, citizen reports continue to show the problem affecting larger denominations, from 10 and 20 pesos to the now-rejected 50-peso bills.
The Underlying Monetary Crisis
The root of this issue lies in Cuba's severe monetary crisis. With the exchange rate shifting from 42 CUP per dollar in 2020 to over 770 CUP per dollar on the informal market this week, the Cuban peso has lost about 94.5% of its value against the US dollar.
To alleviate the strain caused by handling large volumes of cash, the Central Bank introduced 2,000 and 5,000-peso bills in April, and by mid-September, 10,000 and 20,000-peso notes — the highest denominations in the country's history — were released.
The introduction of larger bills contrasts sharply with the difficulties of using smaller denominations, amidst the deteriorating purchasing power of the peso and the continued rise in basic goods' prices.
"How long will this last?" Lara Calm questioned at the end of her video. Her question resonates with many Cubans facing the rejection of legal tender.
Understanding the Monetary Crisis in Cuba
Why are Cuban businesses rejecting certain currency denominations?
Businesses are increasingly rejecting certain denominations like 50-peso bills due to a lack of confidence in the currency amidst the severe devaluation of the Cuban peso and issues with handling large amounts of low-value bills.
What is the Cuban government's response to this issue?
The government, through institutions like BANDEC, has issued statements warning that refusing legal tender is a violation and may result in legal consequences, although these warnings have not effectively resolved the issue.
How has the Cuban peso's value changed recently?
The Cuban peso has experienced a drastic decline, losing approximately 94.5% of its value against the US dollar, with the exchange rate shifting from 42 CUP per dollar in 2020 to over 770 CUP per dollar in the informal market.