More Money Questions...

Off to Cuba next week for the first time, and still trying to work out what to do about money.

I've read the FAQ, and lots of other information elsewhere on the internet, but I'm still confused.

The consensus seems to be: take cash.

We're from the UK, so we'd take Sterling, but I'm worried about wandering around with large amounts of cash. We'll be there for 10 days, so based on the suggested budget in the FAQ of $50 - $75 CUC per day (I've taken off the $25 CUC for casa, because we've already paid for all our accommodation), that works out at $500 - $750 CUC each. Based on the rates on http://www.banco-metropolitano.com/tasasn.htm, that's £300 - £400 each, i.e., up to £800 total for the two of us.

Does that sound about the right amount to budget, and is it really a good idea to be wandering around with that much cash?

I've seen people say not to bother with travellers cheques on the basis that you can't get them replaced while you're there, but wouldn't the benefit be that at least you would get the money back when you get home. I'm not sure the same will be true of cash. What do other people think?

Also, has anyone else on here from the UK been to Cuba recently--I've seen comments about having to make sure that the notes you take to exchange have no tears or markings, and it makes me wonder if I'll have a problem if I turn up with a bunch of the new £20 notes that have started being issued in the UK in the last few weeks/months (they're very different looking to all the other UK banknotes currently in circulation). Do you think there will be a problem getting these exchanged in Cuba?

I've read various comments about the acceptance of credit and debit cards. I'm pretty sure that my Switch/Maestro/Cirrus debit card won't work in the ATMs, but I also have a Visa debit card, issued by Nationwide (UK building society): does anyone know if that will be accepted in Cuban ATMs?

I've also seen it written that if you do manage to use plastic, the CUC will be converted to USD before being converted into your currency. Is this true for UK cards? And if so, does the conversion from CUC->USD attract the additional 10% surcharge applied locally for changing USD->CUC?

I also have a Nationwide Visa credit card, and with both this and the debit card, the Nationwide don't charge any currency conversion loading fees or ATM charges (unlike almost every other credit or debit card issued in the UK), so these cards are usually the cheapest way to get money abroad. Even if the conversion process for using plastic is via USD, then I'm wondering if this may still be cheaper than changing money at a bank or a cadeca. In every other country in the world I would always get the best rate by using the ATM for cash and my credit card for purchases, because I'd get the Visa interbank rate with no loading fee applied, rather than exchanging money over the counter at a bank or bureau de change (where the rate is always worse to incorporate the fees that the exchanging institution charges).

Does the same logic hold for Cuba, or would the rate applied at the ATM be just as bad as at the counter?

Thanks in advance for your help!

Matt

<blockquote>Quote
<hr>I've also seen it written that if you do manage to use plastic, the CUC will be converted to USD before being converted into your currency. Is this true for UK cards? And if so, does the conversion from CUC->USD attract the additional 10% surcharge applied locally for changing USD->CUC?<hr></blockquote> What you saw is the conversion factor/formula that is used "$1.00 CUC = $1.08 USD"

It applies to pounds or plastic, at no time is your currency changed into USD so there is no 10% surcharge applied, that only happens when one uses actual US Currency.

#1 is correct. USD will not even come into the equation. Take a couple days worth of cash with you and convert it to CUC when you get to the airport. This will pay for your cab and let you get settled. Your UK ATM should work and then you can withdraw money as needed. Make sure you take a few CUC and convert to MN to buy local stuff.

My girlfriend and I took in the region of £1400 between us to last 18 days, and carried it all around with us most of the time. Cuba feels very safe, and I never once felt threatened or uncomfortable despite having all that money on me.

Outside Havana, ATMs are few and far between (there were a few in the centre of Santiago and a few more in the centre of Santa Clara, but nowhere else that I saw). Even these didn't display the Visa symbol so may well only work on the Cuban national network, not for international cards. I was very concerned about this before I left, visited this forum regularly and did as much research as I could online, and couldn't find anyone who said they had succesfully used a UK debit card outside Havana (I had planned to be away from Havana for 2 weeks of my trip). It was at this point that I decided to take cash.

Now is a good time to visit Cuba for those with pounds in their pockets, as the CUC is fixed in relation to the dollar.

#2 Don't change too much CUC into CUP - you might not be able to get rid of it all.

Feel free to PM for more info.

Phil.

Thanks all for the responses. All very useful info.

I forgot to mention in my original post that we'll be in Havana for quite a few of our 10 days, so the lack of ATMs outside Havana wouldn't necessarily be a problem.

#3: Was your £1400 for 18 days to include the cost of accommodation or just food/drink/etc? And was it enough or too much?

#3 / #4: As I said in my original post, I do know that my Switch/Maestro/Cirrus card will not work, but I also have a second debit card, which is a Visa Debit Card. It has the visa logo on it in the top right corner like a credit card would (it's NOT a S/M/C card). Since posting this morning, I have found a post on the Tripadvisor forums where a Brit claims that he has successfully used a similar card in Cuba.

I don't think I can rely on that, though, so I think I'll probably end up taking mostly cash (would be good to have as a backup, though).

#4: Also since posting the original post, I've found other reports elsewhere that people did actually have trouble getting the new £20 notes accepted when they were there mid-March just after they'd been introduced, but then subsequently people had posted to say that they were now being accepted with no problems.

G # 2: “USD will not even come into the equation”
More on the interest to enlightening than contradicting you should all know that the USD still is used as the money of reference for Cuba’s banking system. To understand how still the USD is involved into the equation take a look to the international change rates between the USD and the GBP…and then compare them with those of the CUC & GBP.
All foreign hard currencies suffer a real devaluation of around 10% when converted into the CUC based on the USD comparison when in fact the USD suffer at the end a total devaluation of around 20% due to the additional 10% surcharge at the time to be changed.

R # 4: “and make sure they are not American Express “
Such statement is not 100% accurate either. AE-TC are cashable at BFI (Banco Financiero INternacional) and FYI a total of around 15% will be the “damage” contrary to the 20% when cashing over the counter. This does not mean at all I am suggesting travelers to bring AE-TC (mainly if they are Americans) nor that there are BFI subsidiaries all over the Island nor that is the changing process hassling free. Yes, written invoices with dark ink easy readable letters and your passports will be required to cash TC.
On another note, ONLY Visa logo cards are cashable at the existing ATM in the country.
Allow me now to share with you a very recent experience with a Visa logo credit card from HSBC:
A traveler right now in Cuba had to spend more than 3 days interacting with his Bank in the UK as for her to be able finally to cash over the counter her card. She was told at the end that the best is to inform your bank about your plans to visit Cuba so they make the proper adjustments before your arrival. It looks like this Bank takes extra anti-fraud precautions when relating to transactions originated in Cuba so the delay. It maybe just a single situation and not a general one but it is always good to know, I guess.
So while it is good to know the experiences of those when traveling in Cuba, I always suggest those planning to come to Cuba to contact their correspondent banks in their own countries. They should not only know but have the duty to explain things to their clients.

I think you'll have no problems at all....people say take cash because when you use a credit or debit card for cash advances they take a 3% charge. If I were you, I'd take cash, take your Visa Credit card for emergency....front load it if you you don't want to pay any interest. You don't have to carry your cash around with you after you've arrived at your hotel or casa. As for saying that the usd is never involved, I think you'll find as I have , that if you go to the bank and exchange money or get money on the credit card, you'll get a number on your receipt that reflects the usd equivalent of your transaction.....but you will not be penalized the 10% so ignor that. I believe that all Visa and Mastercard transactions regardless of where they take place go thru the head offices in the USA.
As for the lb sterling bills, as long as they are in good shape, you should have no problem and if you're still paranoid, change them for Euros. You can change money in the airport on arrival while waitng for your luggage....they are used to foreign currency and I have found them fast and problem free with canadian money. I have a money belt. When I go out from the casa for the day, all I take is enough money for the day and a foto copy of my passport and the business card of where I'm staying. Aside from that, nothing else should be necessary and if you lose it, it won't be the end of the world. In CUba there are very few assaults but if you act foolish you could lose your important things....they will steal if given the opportunity.same as anywhere else.