Cuba Bans The US Dollar On The Island

[Nino]

Surprise announcement by the Cuban Central Bank : As of June 21st Cuba will not accept the US Dollar claiming that it has too many dollars that it cannot unload on international banks

And visitors will not be able to exchange US Dollars in Cuba from that date on, they will be required to use alternate currencies.

All of this of course is "due to the US embargo" ... what else.

Visitors will not be able to exchange dollars in Cuba as of June 21
Visitors using the "accepted international cards" on the island "have no problems," the authorities clarified.
14ymedio, Havana | June 12, 2021

https://www.14ymedio.com/cuba/visitantes-cambiar-dolares-Cuba-partir_0_3111288844.html

Travelers arriving in Cuba as of June 21 will not be able to exchange US dollars in cash, the Cuban financial authorities warned this Friday a day after announcing the "temporary" suspension of cash deposits of that currency in the banks of the island.

The first vice president of the Central Bank of Cuba (BCC), Francisco Mayobre Lence, affirmed in the Round Table of national television that "those who travel to the country during the period in which the measure is in force, will have to come with a currency other than the dollar. to cover your expenses."

The official clarified that visitors who use the "international cards accepted" on the island "have no problems."

When explaining the reasons for the measure, Mayobre justified that the people who arrive in the country, mainly tourists and visiting emigrants, will experience the "same thing that happens to Cuba as a country, which due to the blockade cannot make its dollars in the market. international and you have to exchange them in another currency to be able to buy abroad.

The announcement has fallen like a bucket of cold water among the island's emigrants living in the United States, where it is estimated that in 2017 there were 2.3 million people of Cuban origin. The new restriction could further complicate the sending of remittances to their relatives, because much of it is done through informal agencies that deliver cash in dollars to Cuba.

The official decision not to accept dollars also complicates the travel of Cuban Americans to the island, where most of the cards issued by US banks cannot be used due to the restrictions imposed by the embargo. Visitors would have to purchase another foreign currency before traveling and bear the financial costs of the exchange.

When the Government announced its new measure against the dollar on Thursday, the BCC specified that it is due to "the obstacles" imposed by "the US economic blockade" so that the national banking system can deposit the dollars it collects on the island abroad. .

[El Presidente]

My understanding is that the US owns it's physical currency globally. 

Cuba cannot pay internationally in USD (complete a transfer using USD). 

Makes some sense to go in another direction before it becomes Panama. 

 

 

[Nino]

Cuba trades with many countries, I doubt it cannot "get rid of the US Dollars it has" and needs to stop accepting the $.
Specially now that the Paris Club has given Cuba another 2 years to pay the debt Cuba owes since 2015 when it was pardoned 8,5 billion $ of the 11 billion $ debt it had with its trading partners.
Here some figures from 2018 :

Quote

 

Cuba Exports $ 1,180 million (2018) Exported products tobacco, sugar, rum, nickel, steel and Crustaceans (the export of professionals is not counted) Export destination China: 37.7% Spain: 11.2% Germany: 5.06% Hong Kong: 4.42% Portugal: 4.09% Cyprus: 3.31% Switzerland: 3.19% Belgium: 2.88% France: 2.63% Brazil: 2.61% Other countries: 31.91%

Cuba Imports $ 5.840 million (2018) Imported products machinery, motor vehicles, oil and natural gas, organic chemicals, plastics Origin of imports Spain: 19.7% China: 18.5% Mexico: 7.19% Russia: 6.38% Brazil: 5.9% Italy: 5.58% Germany: 4.48% United States: 4.04% Canada: 3.95% France: 3.87% Netherlands: 3.36% Argentina: 2.14% Other Countries: 14.91%

 

More so as it has been urging its citizens to deposit all their US $ into the gvmt. banks in order to get MLC (foreign currency) credit cards so they can buy basic goods in gvmt stores. Good business for the Cuban gvmt as it pays 24 CUP per dollar while the "street" rate is between 50 to 70 CUP per dollar.

Some voices from Cuba :

Cubans do not believe the government's story with dollars: 'When does the cachumbambé end?'
Citizens question the inconsistency of the regime's measures in recent months.

https://diariodecuba.com/cuba/1623497108_31860.html

The forthcoming suspension of the entry of dollars in cash into the Cuban banking system, unleashed criticism of the Government for improvisation in recent months with the economy. "Now the ox shit all over the place. Question: how am I? Hand up the euro! When does the cachumbambé end for us?" Said Cuban comedian Ulises Toirac, after the announcement made by the Central Bank of Cuba (BCC) that dollars will not be accepted as of June 21.

Playwright Yunior García Aguilera, a member of the 27N group, questioned the Cuban government's inconsistencies when he said that the BCC cannot accept deposits in dollars because there is a disproportionate amount of cash in the vaults, when "only three weeks ago CADECA complained of a significant foreign exchange deficit, and therefore, they were 'forced' to suspend the exchange service at international airports.

" "Both one measure and the other are justified, we already know, in the always aided blockade (US embargo on the island). However, the vice president of the BCC, Yamilé Berra, escaped, with a trembling voice, a small detail. He admitted that the blockade is not the only reason why we are an unreliable economy. Unreliable? The very incoherence of the temporary, conjunctural and / or special measures that are thrown at us every other day, make us the Last place a serious investor would put their money! "Garcia said on Facebook.

The Cuban influencer known as Yessy World said that the island's leaders "are living with double standards. They are living off what your family sends you. They want to collect the money because the money is on the street ... On the street! Don't give it to him, don't give it to him, don't deposit anything. Woe to you if you drop the few dollars you have and go to the bank running to deposit them. "

"With what face are they going to say to the Cuban 'you cannot walk with dollars' if they have everything for sale in dollars? Now is the time to ask all the stores that have put in freely convertible currency (MLC) to pass them to pesos. Let them be ashamed and let those stores in MLC knock them down! "added the influencer who resides in the United States.

[Santiago]

Allowing the Cuban people access to USD is dangerous to the Cuban Communist Party.

Unless the Cuban government is willing to let the market dictate the exchange rate  USD will be mostly exchanged on the street instead of in CADACAs.

At 24 Pesos to the Dollar the government is buying USD at half price or less!

Cuban government will limit public access to USD any way it can in order to keep their racket going.

[NSXCIGAR]

When explaining the reasons for the measure, Mayobre justified that the people who arrive in the country, mainly tourists and visiting emigrants, will experience the "same thing that happens to Cuba as a country, which due to the blockade cannot make its dollars in the market. international and you have to exchange them in another currency to be able to buy abroad.

I don't think it's a good idea to treat tourists to Cuba to like the Cuban citizens...

[SCgarman]

18 minutes ago, NSXCIGAR said:

When explaining the reasons for the measure, Mayobre justified that the people who arrive in the country, mainly tourists and visiting emigrants, will experience the "same thing that happens to Cuba as a country, which due to the blockade cannot make its dollars in the market. international and you have to exchange them in another currency to be able to buy abroad.

I don't think it's a good idea to treat tourists to Cuba to like the Cuban citizens...

Are any tourists visiting there, or permitted to visit there? Yet?

[Corylax18]

55 minutes ago, NSXCIGAR said:

When explaining the reasons for the measure, Mayobre justified that the people who arrive in the country, mainly tourists and visiting emigrants, will experience the "same thing that happens to Cuba as a country, which due to the blockade cannot make its dollars in the market. international and you have to exchange them in another currency to be able to buy abroad.

I don't think it's a good idea to treat tourists to Cuba to like the Cuban citizens...

Agreed. 

36 minutes ago, NYgarman said:

Are any tourists visiting there, or permitted to visit there? Yet?

I was about to say. Easy now when there isnt any money coming in, we'll see how long it lasts though. Tourists are allowed, but the restrictions make it very unattractive. Most business down there was conducted in CUP/USD. They thought getting rid of the CUP would solve the problem. It obviously did not. Getting rid of the USD definitely will though..................

[El Presidente]

For the sake of awareness.

The international commercial use of USD as a means of payment for Cuban goods or services  is not permitted. 

Any company doing so runs the risk of having their payment stopped and held. 

Cuban goods and services may be priced in USD, but at a commercial level at least, payments are rarely in USD. 

 

 

 

[Corylax18]

51 minutes ago, El Presidente said:

For the sake of awareness.

The international commercial use of USD as a means of payment for Cuban goods or services  is not permitted. 

Any company doing so runs the risk of having their payment stopped and held. 

Cuban goods and services may be priced in USD, but at a commercial level at least, payments are rarely in USD. 

 

 

 

Yes, on paper. But it does happen, frequently. Purdue doesn't Accept CUC for the Tons of processed chicken they send to the island. Nor do any of the American companies that trade with the island. China holds more USD than just about anybody, I don't think many Chinese companies would say No to being paid in USD. Havaning (based in Spain) will still let me book with a US Credit card. If there had been some recent change in policy or enforcement to trigger this decision, I might agree with you, but the rules haven't changed. Its another desperate attempt at controlling the out of control dumpster fire called the Cuban Economy. It wont make things any better. It might make things bad enough that it triggers real change.  

[Jimmy_jack]

Too bad no one in the US govt cares enough to just stop the embargo. Enough already. 
 

We deal with China, the Saudis and all kinds of other deplorable governments. It’s ridiculous. 
 

Also, communism didn’t work. End of story. 

[El Presidente]

1 hour ago, Corylax18 said:

Yes, on paper. But it does happen, frequently. Purdue doesn't Accept CUC for the Tons of processed chicken they send to the island. Nor do any of the American companies that trade with the island. China holds more USD than just about anybody, I don't think many Chinese companies would say No to being paid in USD. Havaning (based in Spain) will still let me book with a US Credit card. If there had been some recent change in policy or enforcement to trigger this decision, I might agree with you, but the rules haven't changed. Its another desperate attempt at controlling the out of control dumpster fire called the Cuban Economy. It wont make things any better. It might make things bad enough that it triggers real change.  

Cory, I think you miss the point. 

An approved contract (US corporation to Cuba) has no issues being paid in USD as it is OFAC/US Treasury "Approved".  

Havaning.com (great people by the way) do whatever they can to get it done. They run a risk. Airbnb have their own current issues with OFAC on Cuba. 

Distributors cannot pay Habanos in a USD transfer.  Retailers cannot pay distributors in USD.  No major European/Asian supplier can be paid in USD for a non US Govt approved Cuban supply contract.  It is not a big thing as there is no need to use USD as the transactions/transfers will be flagged and you will be royally screwed. 

Right now, why on earth would the Cuban Govt want the USD to be the defacto currency if they can't recycle it effectively?  Force people to change into pound/Euro/CAD before they arrive. 

You are right in that it is a dumpster of an economy. 

You are right in that it won't work. 

I am also hopeful that it is another step towards real change. 

I was just ensuring a factual understanding of the USD/Transfer/banking pactice on this and other similar threads. 

 

[Corylax18]

47 minutes ago, El Presidente said:

Cory, I think you miss the point. 

An approved contract (US corporation to Cuba) has no issues being paid in USD as it is OFAC/US Treasury "Approved".  

Havaning.com (great people by the way) do whatever they can to get it done. They run a risk. Airbnb have their own current issues with OFAC on Cuba. 

Distributors cannot pay Habanos in a USD transfer.  Retailers cannot pay distributors in USD.  No major European/Asian supplier can be paid in USD for a non US Govt approved Cuban supply contract.  It is not a big thing as there is no need to use USD as the transactions/transfers will be flagged and you will be royally screwed. 

Right now, why on earth would the Cuban Govt want the USD to be the defacto currency if they can't recycle it effectively?  Force people to change into pound/Euro/CAD before they arrive. 

You are right in that it is a dumpster of an economy. 

You are right in that it won't work. 

I am also hopeful that it is another step towards real change. 

I was just ensuring a factual understanding of the USD/Transfer/banking pactice on this and other similar threads. 

 

I got your point, but I don't think its particularly relevant. If Cuba had all their debts paid off and 10 Billion USD burning a hole in their pocket, we would be on the same page. 

But they don't, they have 10-15 billion dollars worth of debt and no money to pay with. Regardless of Currency. They have plenty of Debtors who would be more than happy to thumb their noses at the US Banking system. Criminals move hundreds of billions illegal ever year. More than Cuba's entire GDP. Its a garbage excuse, now, and the past hundred times they've tried to use it. 

I understand why they wouldn't want the USD to be the functioning currency in the economy. Any transaction with the Cuban Government/Military violates the embargo. So any currency except maybe the Yuan or Ruble should be just as difficult to deal in, right? I don't see anything being gained, for anybody here. Cutting their nose to spite their face. Again. 

 

[El Presidente]

1 hour ago, Corylax18 said:

Criminals move hundreds of billions illegal ever year. More than Cuba's entire GDP. Its a garbage excuse, now, and the past hundred times they've tried to use it. 

Cory, I am not a criminal and nor am I stupid. 

Whereas criminals transfer funds by diguising it's origin/purpose, I nor any other legitimate business dealing in Cuban product should have to do so. Don't relate this issue to criminality. 

I nor a distributor should have to set up multiple offshore bogus corporations to get around US treasury/OFAC putting the squeeze on non US banks with a US financial interest, regardless how minor. 

We get you hate the Cuban regime. It's a big club and you are not the only member. 

Purposefully ignoring factors outside of incompetence simply dumbs down the discussion. 

What they have done here will not work. They will simply create a new currency black market. 

 

[mprach024]

Are they trying to push another currency to replace the dollar or is this just an effort to solidify their own currency?  I can see the inconvenience to many vendors that operate with Cuba, but doesn’t this just make sense given they can’t do business with American banks?  I’m very certain I’m missing valid points as to why this is bad.  I’m very uneducated here.   

[El Presidente]

Mitch, in brief. 

• US owns it's currency physical or digital. 
• US Treasury/OFAC can (and does)  penalise any global financial institution with an interest in the US should they facilitate non approved (by OFAC) transactions in Cuban goods and Services.  An interest in the US making you subject to fines may be very minor. Think The bank of Kenya having an office in NY. 
• Fewer and fewer  banks over the past 4 years wish to touch clients  with Cuban product connections for fear of US OFAC reprisals.  Traditional Cuban banking havens of UK and Spain have also come under pressure with several high profile companies selling/distributing Cuban product simply told that they have 60 days to move their account as the banks compliance teams deem them too hot to touch in the current environment. 
• Cuba removes the CUC
• The USD becomes the defacto/preferred currency. 
• Cuban Government works out that given the international restricions, they can't readily use what has become their default currency. 
• They  temporarily suspended its use in the hope that they can get the same amounts in other currency. 
• They are dreaming and have no idea of the unintended consequences. 

 

[mprach024]

26 minutes ago, El Presidente said:

Mitch, in brief. 

• US owns it's currency physical or digital. 
• US Treasury/OFAC can (and does)  penalise any global financial institution with an interest in the US should they facilitate non approved (by OFAC) transactions in Cuban goods and Services.  An interest in the US making you subject to fines may be very minor. Think The bank of Kenya having an office in NY. 
• Fewer and fewer  banks over the past 4 years wish to touch clients  with Cuban product connections for fear of US OFAC reprisals.  Traditional Cuban banking havens of UK and Spain have also come under pressure with several high profile companies selling/distributing Cuban product simply told that they have 60 days to move their account as the banks compliance teams deem them too hot to touch in the current environment. 
• Cuba removes the CUC
• The USD becomes the defacto/preferred currency. 
• Cuban Government works out that given the international restricions, they can't readily use what has become their default currency. 
• They  temporarily suspended its use in the hope that they can get the same amounts in other currency. 
• They are dreaming and have no idea of the unintended consequences. 

 

Thanks Rob, helpful summation

[Nino]

16 hours ago, Corylax18 said:

It wont make things any better. It might make things bad enough that it triggers real change.  

It might very well be the drop that spills the glass ...

12 hours ago, mprach024 said:

Are they trying to push another currency to replace the dollar or is this just an effort to solidify their own currency?

Yes, the Euro - but this goes further than that, it is about squeezing foreign currency from the Cuban diaspora to finance the military and maintain the racket by charging Cubans sending remittances  exchange fees while they get worthless Pesos and the hard currency goes offshore.

I believe this article sums it quite well :

https://diariodecuba.com/economia/1623680817_31898.html

Cuba and Dollars: The Regime Resorts to Another Scam

With the new measure, the regime once again turns to scare tactics to rob and subdue a population that has been fleeced countless times before.

Emilio Morales

Miami 14 Jun 2021 - 16:26 CEST

'Guayaberos' Alen Lauzán Diario de Cuba

Strangled by its own ineptitude at managing the country’s finances and economy, the Cuban regime is turning to its old trick of scaring people in order to subdue a population that has been fleeced countless times before, ever since Fidel Castro rose to power.

Thus, the Government is temporarily suspending the acceptance of bank deposits in US dollar notes. The measure will take effect on June 21. Cubans will have until the 20th to deposit dollar notes in their USD bank accounts. According to the Central Bank of Cuba (BCC), as of June 21, natural and legal persons, both Cuban and foreign, will not be able to make deposits, or carry out any other transaction, in US dollars at Cuban banks.

The measure is a ruse to get people to deposit any dollars they have "under the mattress," as the regime has run out of dollars and does not have the money to pay the few suppliers left on its list. Moreover, Exchange houses (CADECAS) and banks are not taking in dollars, as people prefer to sell them on the street, at a rate of 1=70 CUP. The black market has dominated the currency exchange war and overwhelmed banks and CADECAS, thanks to the grandiose and misguided "Ordering Task," supposedly implemented to reform the country's finances.

In reality, what does this measure mean? Very simple: as of June 21, all deposits in dollar accounts will have to be made in other currencies, a maneuver that aims to place millions of dollars in the regime's hands, thanks to the mandatory currency exchange charge. Every time a deposit enters one of these accounts, the bank will levy a tax based on the exchange rate that it establishes for each currency with respect to the dollar.

In other words, one is forced to have an account in dollars, but can only deposit in a currency other than the dollar, being forced to pay the exchange fee imposed by the Central Bank of Cuba.

In this way the regime aims to continue bleeding all those Cuban exiles who send remittances in dollars. Now it will force them to send them in another currency, and will apply an exchange charge when deposits are made in the accounts of the beneficiaries. Through this measure the regime also intends to eliminate the informal market for the physical sending of remittances, by forcing exiles to send dollars electronically. In the event that they are exchanged for Euros, or another currency, and sent to Cuba in cash, the tax on the currency exchange will be applied to the other currency when it is deposited in a dollar account.

In reality, this measure will not bolster the economy at all; quite the opposite. The dollar is going to skyrocket on the black market, bound to surpass the current exchange rate of 1 USD = 70 CUP. Even if it is not accepted by banks, the dollar will continue to dominate the black market, as it is the currency with which Cubans travel abroad to buy items to later sell them on the informal market.

In addition, the measure will drive up the exchange fees of the other currencies used on the black market. Consequently, there will be an increase in inflation and a rise in product prices, on both the formal and informal markets.

The Cuban government lies

The minister of the Central Bank of Cuba (BBC) expressed in her remarks at the Round Table that "the measure is due to the economic sanctions of the United States Government against Cuba and the inclusion of Cuba on the list of countries sponsoring terrorism, which represents an obstacle to international financial transactions."

The Cuban government has for some time now carried out most of its commercial transactions in Euros or other currencies. Only remittance operations, payments to tourist operators from the US market, purchases made in cash from American farmers, and certain operations carried out with companies in Panama, have been completed in dollars. The rest of the commercial operations carried out by the Cuban Government in its foreign trade are in other currencies. This measure took effect many years ago, back when Carlos Lage was the secretary of the Council of State.

As is well known, more than 90% of the remittances that reach the country are from the US. Therefore, most of the remittances that arrive in Cuba are in US dollars. As we have already explained, the Cuban regime controls remittances to the island via formal channels through national and foreign companies forming part of the business structure of GAESA, the conglomerate belonging to the Armed Forces. All these operations, which involved sending remittances from the US, are carried out in US dollars. Those dollars always end up in bank accounts in a third country, and are never actually placed into the hands of those to whom they were sent. Instead, these companies give Cubans their equivalents in Cuban pesos, which are worthless outside the country.

In 2020, dozens of Cuban companies belonging to the Cuban Armed Forces were sanctioned. Among them, the most important in the financial sphere were companies involved in handling remittances from abroad; in this case, FINANCIERA CIMEX S.A. and AIS S.A., both belonging to the Grupo de Administración Empresarial (GAE S.A.), colloquially known as GAESA.

This group also includes the Banco Financiero Internacional (BFI), the bank of the Cuban military, and that which handles the largest number of commercial operations in foreign currencies, and it is where the foreign companies operating in the country have their accounts in dollars. This is the bank that collects funds from all import and export operations related to non-state forms of production (the self-employed and Non-Agricultural Cooperatives), carried out through 36 state companies specialized in these tasks.

Therefore, it is striking that just six months after the Cuban government authorized the company RED S.A. - a non-bank entity belonging to the BCC, and one outside the business structure of the Armed Forces - to process remittances to Cuba, in order to resolve the issue that currently prevents dispatches from the US, the BCC has taken this measure.

At the end of the day, the remittances are still in limbo. GAESA continues to resist giving up control of them, and the new measure is the solution found. The aim is two-fold: to keep dispatches in dollars totally digital, but also to force physical deposits in dollar accounts in other currencies, to make money off the exchange fees.

Foreign companies present on the island will also be affected, already suffering from the financial restriction that prevents them from repatriating their profits in dollars. Now they will be bled by the forced exchange conditions imposed on them.

Conclusions

The Cuban Government has just applied an explosive measure in the midst of the financial crisis that the country is suffering through. Not only does it further irritate a population that has been frustrated for some time now (its weariness exacerbated in the last 18 months by the impact of the pandemic and the severe economic, political and social crisis that the country is enduring), but it also hurts the few investors on the island.

This theft that has just been implemented is a perverse and abusive measure that, far from buoying the economy, is going to be a burden that could exhaust the peoples' patience and start an inflationary storm at a time when the dollar is already trading at 70 CUP, and the Euro at 80/85 CUP, on the informal market.

The solution required by the complicated situation of the Cuban economy does not involve hijacking the dollar and remittances, and putting the financial screws to citizens even more, but rather to finally free up the country's productive forces, open the market to free enterprise, and allow citizens to generate wealth.

The schemes to survive of Díaz-Canel and the mafia leadership whose orders he follows are failing, and each new measure that they implement is more mediocre than the previous one. The trigger that set off the French Revolution was a rise in the price of bread for a hungry population, for the fall of the Berlin Wall it was a bungled order ... At this rate, it seems that the dictatorship's final blunder could come at any moment.

[Santiago]

Quite a complicated situation.  Cubans will still get USD from tourists and remittances, obviously. 

If I'm understanding correctly and their USD only loses value when exchanged / deposited into their bank account, the logical path would be to spend the USD in the Cuban economy and simply never deposit it.

Then, of course, Cuban government will crack down on that and the vicious cycle continues - see Argentina and their USD controls.

[Nino]

1 hour ago, Santiago said:

Quite a complicated situation.  Cubans will still get USD from tourists and remittances, obviously. 

If I'm understanding correctly and their USD only loses value when exchanged / deposited into their bank account, the logical path would be to spend the USD in the Cuban economy and simply never deposit it.

Then, of course, Cuban government will crack down on that and the vicious cycle continues - see Argentina and their USD controls.

How can you spend the US $ on the Cuban economy when the Cuban gvmt replaces the local currency, puts all basic good stores on plastic card "MLC" only basis - which means you HAVE to deposit your greenbacks ( or any other hard currency ) into those MLC cards in order to buy something to eat .

Of course, if you have dollars you might exchange them on the street and buy the stuff you need from the black market, but as you correctly point out, there will be a crack on that soon.

Yes, very much Argentinian "Corralito" in effect here.
 

[JohnnyO]

All points well taken but most are auxiliary reasons. Nobody is buying "We have bags of Benjamins and nobody wants it". The #1 reason is because the US/OFAC is shutting down their electronic transfers. In the latter stages of the Trump admin small internet virtual markets were selling food items to be paid in USD, through Spain, Canada etc that was already in Cuba. Very pricey food items. Those companies would dissapear after a couple of weeks, only to pop up a few a few days later with a different name/logo but it was the same modo de operandi. OFAC was shutting them down. A small example, but I'm sure there are larger scale transfers behind the scenes. Cuba had hoped that Biden would move on that policy and go back to the Obama rules. He has not, so the shutdowns continue. Cuba installed the USD hoping that relations would go back to the Obama days. A perfect excuse to transfer currency out of Cuba. It hasn't worked out. It is said that Trasval who handles all of the bank/currency movement is owned by Raul. It's home office is in France. It has been said that Raul owns a French passport. So the Euro was the next logical step once Uncle Sam put on more presure . Next thing they'll be wanting for us to pay in gold. John

[El Presidente]

What we are witnessing is the financial embargo actually working. 

Lipservice to the financial embargo was paid until 4 years ago. The screws have been progressively tightened since them. January this year they were tightened again and the pressure has not been allowed to come off (to the surprise of all). 

Throw in Covid and the loss of their no 1 income source, foreign tourist dollars.

The Cuban Covt has been outplayed. They are spooked. They are under immense pressure and making bad call after bad call on the ground.  

The populace is being sueezed in a vice.  Something has to give. 

[Corylax18]

What a mess. I'm a amazed the situation hasn't "broken" yet. 60+ years of making the wrong choice on both sides. 

What a plan. Steal money from your Citizen's, charge them a fee to do it and blame someone else. 

@El Presidente I'm certainly not trying to justify my Home Country's part in this mess. Two wrongs don't make a right. Your last post is dead right though, things started changing from a financial perspective the last few years. 

I Talked to a couple friends down there this morning and the price of USD on the black market has already started to go up. 

[dgixxer252525]

2 hours ago, El Presidente said:

What we are witnessing is the financial embargo actually working. 

Lipservice to the financial embargo was paid until 4 years ago. The screws have been progressively tightened since them. January this year they were tightened again and the pressure has not been allowed to come off (to the surprise of all). 

Throw in Covid and the loss of their no 1 income source, foreign tourist dollars.

The Cuban Covt has been outplayed. They are spooked. They are under immense pressure and making bad call after bad call on the ground.  

The populace is being sueezed in a vice.  Something has to give. 

So the embargo is working now that Russia and Venezuela are out of the picture, so to speak?

[El Presidente]

8 minutes ago, dgixxer252525 said:

So the embargo is working now that Russia and Venezuela are out of the picture, so to speak?

It is a little bit more. The financial embargo is working due to the freezing of global financial distribution channels to and from cuba  (including the attack on remittance businesses). 

Traditional European Cuba banking safe havens such as Spain/UK have scaled back their services and that is putting it mildly. 

Cuba is having trouble getting money in....and getting it out.  The traditional/existing funds transfer financial arterial system is blocked to them.  Internationally, funds transfer oversight by institutions/regulators is at a precipice as KYC goes to a whole new level. Banks/remittance companies want to know who is the sender, what it's for etc etc. Everyone is looking for a transaction link to North Korea, Cuba, Syria, Iran as they do not want to jeopardise their US business or be laden with fines should it be found that they knowingly or inadvertantly assisted in one of those countries make or receive a payment. Cuba is a speck. No one is going to risk their businesses to assist them. 

It is the reason Cuba has been pushing Crypto. 

 

 

[El Presidente]

44 minutes ago, El Presidente said:

It is a little bit more. The financial embargo is working due to the freezing of global financial distribution channels to and from cuba  (including the attack on remittance businesses). 

Traditional European Cuba banking safe havens such as Spain/UK have scaled back their services and that is putting it mildly. 

Cuba is having trouble getting money in....and getting it out.  The traditional/existing funds transfer financial arterial system is blocked to them.  Internationally, funds transfer oversight by institutions/regulators is at a precipice as KYC goes to a whole new level. Banks/remittance companies want to know who is the sender, what it's for etc etc. Everyone is looking for a transaction link to North Korea, Cuba, Syria, Iran as they do not want to jeopardise their US business or be laden with fines should it be found that they knowingly or inadvertantly assisted in one of those countries make or receive a payment. Cuba is a speck. No one is going to risk their businesses to assist them. 

It is the reason Cuba has been pushing Crypto. 

 

 

I can't believe I wrote that gobblygook. 

 

In short. They can't move shit around. 

All their contacts have gone to ground. 

Criminal syndicates/cartels differ in that they hide money primarily through asset purchases from which they go on to  raise funds (leverage other asset purchases/investments). 

Cuba needs to move money in and out constantly. It is hard to hide such movements.