diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4c425a6e5d..2206bba95b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,9 @@
 - Fix typo in ILS currency
 - Add Caribbean Guilder (XCG) as replacement for Netherlands Antillean Gulden (ANG)
 
+## 6.20.0
+- Add `Currency#cents_based?` to check if currency is cents-based
+
 ## 6.19.0
 
 - Change Peruvian Sol (PEN) decimal mark and thousands separator.
diff --git a/README.md b/README.md
index b55438e3b4..fc740902f9 100644
--- a/README.md
+++ b/README.md
@@ -130,8 +130,9 @@ including the currency symbol, name and much more.
 
 ``` ruby
 currency = Money.from_cents(1000, "USD").currency
-currency.iso_code #=> "USD"
-currency.name     #=> "United States Dollar"
+currency.iso_code     #=> "USD"
+currency.name         #=> "United States Dollar"
+currency.cents_based? #=> true
 ```
 
 To define a new `Money::Currency` use `Money::Currency.register` as shown
diff --git a/lib/money/currency.rb b/lib/money/currency.rb
index b4e682b55b..cd604659ce 100644
--- a/lib/money/currency.rb
+++ b/lib/money/currency.rb
@@ -405,7 +405,7 @@ def symbol_first?
       !!@symbol_first
     end
 
-    # Returns if a code currency is ISO.
+    # Returns true if a code currency is ISO.
     #
     # @return [Boolean]
     #
@@ -416,6 +416,17 @@ def iso?
       iso_numeric && iso_numeric != ''
     end
 
+    # Returns true if a subunit is cents-based.
+    #
+    # @return [Boolean]
+    #
+    # @example
+    #  Money::Currency.new(:usd).cents_based?
+    #
+    def cents_based?
+      subunit_to_unit == 100
+    end
+
     # Returns the relation between subunit and unit as a base 10 exponent.
     #
     # Note that MGA and MRU are exceptions and are rounded to 1
diff --git a/spec/currency_spec.rb b/spec/currency_spec.rb
index 2e01018bbc..c6fc192f4a 100644
--- a/spec/currency_spec.rb
+++ b/spec/currency_spec.rb
@@ -339,6 +339,16 @@ def to_s
     end
   end
 
+  describe "#cents_based?" do
+    it "returns true if the currency is cents-based" do
+      expect(described_class.new(:mxn).cents_based?).to be true
+    end
+
+    it "returns false if the currency is not cents-based" do
+      expect(described_class.new(:clp).cents_based?).to be false
+    end
+  end
+
   describe "#to_s" do
     it "works as documented" do
       expect(described_class.new(:usd).to_s).to eq("USD")