Cuba is introducing two new high-denomination banknotes as part of efforts to ease cash transactions amid ongoing inflation and economic pressures.
The Central Bank of Cuba announced that 2,000 and 5,000 Cuban peso notes entered circulation Wednesday, marking the first time the island’s paper currency will feature women.
The 2,000-peso note, designed in violet and pink tones, features Mariana Grajales, a patriot of Cuban independence and mother of several national heroes. Meanwhile, the blue-toned 5,000-peso note depicts Celia Sánchez, a guerrilla fighter and close collaborator of former President Fidel Castro.
The notes, equal to roughly US$4 and US$10 respectively, were previewed Tuesday on the government website Cubadebate.
According to Cubadebate, the new denominations 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.”
Until now, the highest denomination in circulation was the 1,000-peso note. However, rising inflation since 2001 has forced many Cubans to carry large quantities of cash, often in bags rather than wallets.
Authorities have encouraged bank deposits and electronic transfers, but cash remains widely preferred among residents.
Official figures show annual inflation closed last year at 14 percent. Over the past five years, price increases — which peaked at 77 percent in 2021 — combined with declines in gross domestic product have significantly affected daily life across the island.
Cuba continues to face a severe economic crisis driven by the impact of the COVID-19 pandemic, the 2021 financial reform that triggered surging inflation, and increased sanctions from the United States aimed at encouraging political and economic liberalization.
