Before going
to Cuba, I read about how travelers must exchange money into CUCs
(pronounced like "kooks" or "cooks"). I got a headache trying to understand it. Locals use a
different currency referred to as local pesos. The exchange rates between CUCs and pesos and what can and can't be done with each currency is confusing. Predictably, CUCs are used for tourist
commerce like restaurants, taxis, admissions to museums and tips. The government controls all currency exchange; and the sale of CUCs is an engine that drives foreign currency into Cuba.
However, locals, all of whom work for the government one way or another, are paid in local pesos. But, those Cubans who are fortunate enough to interact with
foreigners can expect to earn salaries in pesos and also to earn generous tips
from tourists in CUCs.
Why does that matter?
Why does that matter?
CUCs can buy the good stuff. CUCs and only CUCs can be used to buy things that are very hard to get in Cuba. CUCs are the
currency bridge to the outside world. This gets really clear when you go into a store. Locals are forced into dreary,
sadly stocked shops with paltry offerings and mostly bare shelves.
Selection of household goods, toiletries and plumbing supplies for sale in local pesos
Local peso offerings for house and garden products
Food rations for sale in local pesos. Each citizen is allowed to buy only one half chicken per month. The smiling clerk is weighing rice for a customer. The chalk board behind him shows what is available. Each Cuban receives an allotment according to their needs. Pregnant women, children and people with certain diseases are permitted to get more.
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| Used clothing for sale in local pesos |
But, for foreigners who must shop in CUC stores, and for locals who work in tourism and can get access to CUCs, the gateway to goods is pretty wide open. The stores that do business in CUCs feature extensive product offerings and are well stocked with goods from all over the world. You can buy Pringles and flat screen TVs in the CUC stores. And, CUC-denominated stores are much nicer -- well lit and air conditioned. Below is a picture in a CUC store, showing a selection of canned fruits by Libby's.
This upscale shoe store in the restored section of Habana Vieja (Old Havana) is as first world as they come. Such stark contrast to the local peso stores selling a sad collection of castoffs.
This row of stores in Habana Vieja includes a Benetton and a British shop.
I have to
wonder if access to foreigners and their CUCs explains the career changes of
two doctors we met. One is a veterinarian who gave up practice and switched to
being a tour guide for nature hikes. Another one said he was a family physician who quit practicing
medicine in order to manage his father's art business full time. Instead of diagnosing and treating disease, he organizes dinners for gallery visitors and international expositions to increase visibility and value of his father's work. The lure
to an occupation providing access to tourist currency is very compelling.
We also met a rural family doctor whose monthly government salary in pesos is the equivalent
of $40. Of course, the state provides free education, food rations,
housing, health care and more. But still, $40 is what a tourist pays to a
Havana taxi driver to ride around for a day in a '57 Chevy. This particular doctor provided (really good, herbal oil) massages
for tourists, for tips. He figured out a way to practice medicine, while supplementing his income with a major amount of CUCs.