The Cuban government reported on Monday that it is once again accepting cash deposits in US dollars in individual bank accounts.
The measure reverses a June 2021 decision made by the banking authorities and at the time justified as a reaction to the increase in financial sanctions from the United States that made it difficult to move green notes to the island.
Now, an official note from the Central Bank of Cuba (BCC) said that with “the current economic scenario of the country, having overcome the pandemic” of COVID-19 and before the “resumption of foreign visitors and the gradual recovery of productive activity and of services” it is “advised to take this step”, that is, to accept US dollars again for deposits in private accounts.
The prohibition of accepting dollars in the accounts generated inconveniences for the population, since the food markets and many of the goods and services on the island are paid for with debit cards called MLC (freely convertible currency) that are encrypted in US currency. in local banks.
The only possibility that citizens had to deposit money in the accounts that backed the plastic was through transfers of dollars from abroad (for people who have relatives outside the country), since these are not cash deposits, or with euros, but with the consequent exchange loss.
Difficulties also arose from the impossibility of legally acquiring dollars, which should be valued at 24 pesos per dollar, in theory, since no bank or exchange house, all state-owned, sold those bills to people, which ultimately triggered the price of green bills on the black market, with a current price of 175 pesos.
Cash dollars were highly sought after by people who were going to travel, either to buy things and resell them or to emigrate.
In August, the authorities reported that they would begin to sell those dollars in cash to individuals, but in a limited way. The rate for these operations is 123 pesos per dollar.
Despite the decision to accept deposits in dollars, the official statement from the BCC warns that “the underlying problem has not been resolved”, alluding to the fact that the United States is pursuing operations and the use of dollars towards Cuba, so it will be ” necessary to monitor the evolution of banking and financial activity from this new step”.
The United States toughened its policy towards Cuba during the government of former President Donald Trump in order to press for changes in the island’s political model and the new president Joe Biden did not modify those sanctions, although he had some elements of flexibility such as permits to send remittances that had been suspended.
In recent years, Washington applied 240 measures against Cuba, including the suspension of cruises, travel restrictions, and placing the island on a list of countries that sponsor terrorism (which has a financial impact on foreign trade), as well as prosecution and fines. to banks from third countries that operate with Cuba.
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