The Republic of Cuba suspends the use of the US dollar due to embargo restrictions with US and foreign banks. Cuba’s central bank restrictions stem from “obstacles that the US embargo creates for the national banking system.”
Cuba bans USD deposits, BCC tells tourists to “arrive in a currency other than dollars”
Cuba, the island nation at the confluence of the Caribbean Sea, Gulf of Mexico and Atlantic Ocean, said this week that US dollars would be suspended in the country. The money order comes from the country’s central bank, and foreign tourists have been advised to leave US dollars at home when visiting. The ad was cited during a round table which aired on state sponsored Cuban television.
“In view of the obstacles that the US embargo creates for the domestic banking system to deposit US dollars collected in the country abroad, a decision has been made to temporarily suspend deposits of US banknotes in the banking and financial system of Cuba, ”he added. Members of the Bank of Cuba (Banco Central de Cuba, BCC) said.
Yamilé Berra Cires, the vice president of the BCC, explained during the roundtable that at the beginning of the leadership of the Trump administration, the United States tightened the embargo. The United States has had an embargo with Cuba since 1958, and the United States also had many problems with Cuba during the Eisenhower and Kennedy presidencies. After the 2008 crisis, the United States and Cuba seemed to gravitate towards friendlier terms during Obama’s presidency.
However, BCC Vice President Berra Cires says problems have worsened since Trump and said 24 foreign banks have stopped doing business with Cuba. Berra Cires also told the roundtable that 95 foreign financial institutions have reported transgressions by Cuban national banks doing business with counterparties. “It is increasingly difficult for Cuba to find international banking or financial institutions willing to receive, convert or process US currency into cash,” added Berra Cires.
“People who enter the country during this period will have to arrive with a currency other than the dollar,” said Francisco Mayobre Lence, first vice president of the BCC.
Minister-President of the BCC: “There is no other option”
Of course, after hearing about the USD ban in Cuba, members of the cryptocurrency community research Cuba will embrace digital currencies as El Salvador recently did with bitcoin. “It’s like [a] 50-year embargo. It’s really depressing, ”one person wrote of the situation between Cuba and America on Reddit. “Are they going to take the crypto now? Another Redditor asked in the r / cryptocurrency thread. Another crypto enthusiast answered the question and said:
I doubt they want to be the last Latin American country to do so.
Cuban Central Bank Minister-President Marta Sabina Wilson González told the roundtable that Cuba had no choice but to make the decision. “We had no choice but to take this measure, which we explain to the Round Table, as we always do when it is a measure that affects people, who will understand that there is no other option, “detailed the minister.
What do you think of Cuba restricting the use of US dollars in the country? Let us know what you think of this topic in the comments section below.
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