Cuba to introduce two new banknotes honoring women to ease inflation as crises persist

HAVANA — Cubans accustomed to shopping with wads of bills stuffed into bags because of skyrocketing inflation will get some relief Wednesday when two new high-denomination banknotes go into circulation.

Cuba’s Central Bank was set to release 2,000 and 5,000 Cuban peso notes, equal to roughly $4 and $10, after they were previewed Tuesday on the government website Cubadebate.

It will be the first time the island’s paper currency features women. The 2,000 Cuban peso note in violet and pink tones will feature a portrait of Mariana Grajales, a patriot of Cuban independence and mother of several of its heroes. The 5,000 peso note in blue will depict Celia Sánchez, a guerrilla fighter who became a close collaborator of former President Fidel Castro.

The new notes 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,” Cubadebate said.

The highest denomination until now has been the 1,000 peso note, but rising inflation since 2001 has meant that many people are forced to carry around bills that don’t fit in their wallets.

Authorities have promoted bank deposits and transfers, but many residents still prefer cash.

Annual inflation closed last year at 14%, according to official figures. The price increases of the last five years — peaking at 77% in 2021 — combined with severe declines in gross domestic product have had a significant impact on daily life.

Cuba is experiencing a severe economic crisis resulting from the COVID-19 pandemic, the 2021 financial reform – when inflation skyrocketed – and an increase in U.S. sanctions aimed at prompting Cuba to liberalize its politics and economy.