A Cuban waiter holds a peso note.
Cuba is devaluing its currency by about 8% compared to the US dollar as part of efforts to revive the economy.
The hard-currency convertible peso used mostly by tourists and foreign firms will now be on a par with the dollar.
The central bank said the aim was to boost exports and local production.
The move will increase the value of remittances received by many Cubans with relatives in the US, and is intended to make the island more affordable for tourists.
The government says it will keep a 10% tax on exchanges with the dollar, which it describes as compensation for the "irrational and unjust" US economic embargo.
Each convertible peso will still be worth 24 of the standard pesos in which most Cubans are paid under the communist island's two-tier currency system.
It is the first time Cuba has revalued its currency in six years.
[Report from the BBC Caribbean Service]
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