How to Use the Banco Central Rates
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I have been asked a few times about how the rates posted here work, so I thought it might be helpful if I posted some explanation. Note that on the Banco Central website, there are two columns of numbers. The first is labelled “Compra”, which means buy, and the second is labelled “Venta”, which means sell. The first column is the one we are usually interested in, because this indicates what it will cost to buy Convertible Pesos. Note that the rates shown are inclusive of currency exchange commissions, which run between 3% to 3.5% on either side of the mid market rate for most currencies. Thus the commission is essentially the difference between the buy and sell rates.
One thing we have to be aware of with these listings is that the numbers for the Pound Sterling and the Euro are shown as the number of CUC you can buy per Pound or Euro. All other currencies are shown as the cost in those currencies to buy one CUC. It seems a strange way to do it, but that is the way they do it.
What that means is that if you want to find out how many CUC you can buy with £100, or with €100 you need to multiply 100 by the number shown for those currencies in the “Compra” column. For all other currencies, you need to divide 100 by the number shown in the “Compra” column. So, in terms of maximizing what you can buy with your currency, for Pounds and Euros, a higher number is better. For all other currencies, a lower number is better.
For example, in the post above (#356), I got the results shown with the following calculations:
For Canadian dollars, $100(CDN) ÷ 1.01919 = 98.12 CUC
For Pounds Sterling, £100 x 1.55815 = 155.82 CUC
For Euros, €100 x 1.25726 = 125.73 CUC
Now, the US dollar is a bit of a special case. The exchange rate remains constant. In terms of a mid-market type of rate, the CUC is pegged at 1.00 CUC = $1.00 US. But because all banks charge a commission on currency exchange, as mentioned above, the rate at which US dollars will buy CUC is a constant value of $1.03360 per CUC. But there is an additional 10% penalty charged on the purchase of CUC with $US. So, while we might think that we could do a similar calculation to the Canadian dollar calculation, and take $100 ÷ 1.03360 = 96.75 CUC, that would only work if the penalty did not apply. To account for the penalty, we must deduct 10%, so that the exchange of $100 US will only give us the equivalent of exchanging $90 US. So the calculation is actually $90(US) ÷ 1.03360 = 87.07 CUC.
One last point to keep in mind is this: the rates posted here are generally the most favourable rates available. At some of the smaller banks, or at cadecas, the number of CUC you will get for your foreign currency will likely be a bit less. At most hotels that do not have cadecas, the exchange at the front desk will usually be even worse. There are a few exceptions to this, and a few hotels give rates very comparable to the banks, but they are rare.