HAVANA (AP) — Cuban residents who have been forced to carry bags stuffed with cash due to severe inflation received some assistance Wednesday as the country launched two new high-value banknotes into circulation.
The Central Bank of Cuba released the new 2,000 and 5,000 peso bills, worth approximately $4 and $10 respectively, following their announcement Tuesday on the official government platform Cubadebate.
These bills mark a historic milestone as the first Cuban paper money to showcase women. The violet and pink 2,000 peso bill displays Mariana Grajales, an independence movement patriot and mother to multiple Cuban heroes. The blue 5,000 peso note honors Celia Sánchez, a guerrilla combatant who worked closely with former leader Fidel Castro.
According to Cubadebate, the new currency will “facilitate cash transactions, respond to the real needs of an economy that demands large amounts of cash… reduce the costs of cash logistics, and improve operational efficiency during the current period of inflation.”
Previously, the 1,000 peso bill represented the largest denomination available, but escalating inflation since 2001 has left citizens struggling with bulky stacks of money that exceed wallet capacity.
While government officials have encouraged electronic banking and transfers, cash remains the preferred payment method for many Cubans.
Official data shows annual inflation reached 14% by the end of last year. Price surges over the past five years — which hit a peak of 77% in 2021 — coupled with sharp drops in the nation’s economic output have dramatically affected everyday life.
The island nation faces a deep economic downturn stemming from the coronavirus pandemic, a 2021 monetary overhaul that triggered massive inflation, and expanded U.S. economic sanctions designed to pressure Cuba toward political and economic reforms.
