Cubans accustomed to making purchases with thick bundles of cash will see new high-denomination banknotes enter circulation as inflation continues to strain everyday life, the Associated Press reported. The move takes effect Wednesday, when Cuba’s Central Bank is set to release two notes—2,000 and 5,000 Cuban pesos—after they were previewed Tuesday on the government website Cubadebate, AP said.
The new banknotes are intended to address practical problems created by rising prices and the limited size of existing bills. In its explanation for the release, Cubadebate said the notes would “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,” AP reported.
The Central Bank also said the redesign would incorporate women for the first time on Cuba’s paper currency. The 2,000 peso note, in violet and pink tones, will feature Mariana Grajales, identified by AP as a patriot of Cuban independence and the mother of several of its heroes. The 5,000 peso note, in blue, will depict Celia Sánchez, described by AP as a guerrilla fighter who became a close collaborator of Fidel Castro.
AP reported that the 1,000 peso note had been the highest denomination until now, but inflation since 2001 has eroded the value of smaller bills, leaving many people carrying sums that do not fit comfortably in their wallets. While authorities have encouraged bank deposits and transfers, many residents still prefer cash for purchases, AP said.
The broader economic context remains severe, with annual inflation closing last year at 14% based on official figures, AP reported. AP said price increases over the past five years peaked at 77% in 2021, and that combination—alongside severe declines in gross domestic product—has had a significant impact on daily life.
AP also linked Cuba’s difficulties to the COVID-19 pandemic, a 2021 financial reform period when inflation surged, and an increase in U.S. sanctions aimed at prompting Cuba to liberalize its politics and economy. The banknote changes arrive as the government seeks ways to ease cash-related frictions for people who continue to rely on paper money for day-to-day transactions.