5 Pesos – Cuba

In 1999, Cuba’s currency situation was defined by a deep and problematic duality, operating under a system of two separate, non-convertible currencies. The Cuban Peso (CUP), the national currency for the populace, was used for salaries and the purchase of subsidized goods in rationed markets (la libreta), but its value was extremely low and it was virtually worthless internationally. Alongside it, the U.S. Dollar (USD) had been fully legalized for use by Cuban citizens since 1993, circulating widely in a parallel economy of "dollar-only" stores (shopping or diplotiendas) where a superior selection of food, medicine, and consumer goods was available exclusively for hard currency.

This dual system was a direct result of the economic crisis known as the Special Period, triggered by the collapse of the Soviet Union. The loss of Soviet subsidies and trade forced the government to open the economy to limited dollarization to attract foreign exchange from tourism, remittances, and foreign investment. Consequently, a stark social divide emerged between those with access to dollars (through tourism jobs, family abroad, or the black market) and those reliant solely on peso salaries, whose purchasing power had collapsed. The state itself became dependent on capturing these dollar flows to fund essential imports and maintain basic services.

The year 1999 fell within a period of relative stabilization for this awkward system, following the economic freefall of the early 1990s. However, the contradictions were acute and widely resented. The government maintained a fixed, artificial exchange rate of 1 USD to 1 CUP for official accounting, while the much weaker black-market rate reflected the peso's true value. This monetary apartheid created pervasive inequalities and inefficiencies, setting the stage for future, albeit slow-moving, reforms that would eventually lead to the creation of a convertible peso (CUC) in the 2000s as an intermediary step toward a more unified currency system.