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Varadero. I stayed at the Barcelo Solymar, all inclusive. Take a trip to Havana. It is a nice place where you can see Old Havana and New Havana. The cigars can be bought at your hotel. For foreign exchange, there should be foreign exchange place/store in your hotel. The hotel will also do foreign exchange but will charge a bit more.
Lastly, save 25 CUC (Cuban Convertible Peso) as you will need this to leave the country. Also, the airport has government Cigar stores and liquour stores.
Have a good time.
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