Cuba’s central bank blocks US dollar deposits across the country
The Republic of Cuba suspends the use of US dollars due to embargo restrictions with US and foreign banks. The restrictions imposed by the Central Bank of Cuba stem from “the obstacles the US embargo creates for the national banking system.”
Cuba Bans USD Deposits, BCC Urges Tourists To “Arrive With A Currency Other Than The Dollar”
Cuba, the island country where the Caribbean Sea, Gulf of Mexico and Atlantic Ocean meet, said the US dollar will be suspended in the country this week. The mandate comes from the country’s central bank, and foreign tourists have been instructed to leave US dollars at home when visiting. The announcement was conjured up during a round table discussion broadcast on state-sponsored Cuban television.
“Given the obstacles the US embargo created for the national banking system to deposit the US dollars withdrawn in the country abroad, it was decided to temporarily suspend the deposit of US banknotes in the Cuban banking and financial system,” said members the Bank of Cuba (Banco Central de Cuba, BCC) with.
Yamilé Berra Cires, Vice President of the BCC, said during the discussion that the US had tightened the embargo at the beginning of the leadership of the Trump administration. The United States has had an embargo on Cuba since 1958, and the US also had numerous problems with Cuba during the Eisenhower and Kennedy presidencies. After the 2008 crisis, the US and Cuba appeared to be leaning towards friendlier terms during the Obama presidency.
However, BCC Vice President Berra Cires claims problems have worsened since Trump, saying that 24 foreign banks have stopped trading with Cuba. Berra Cires also said during the round table discussion that 95 foreign financial institutions reported the violations of the Cuban national banks doing business with counterparties. “It is becoming increasingly difficult for Cuba to find international banking or financial institutions that are willing to accept, exchange or process US currency in cash,” continued Berra Cires.
“People entering the country during this time will have to use a currency other than the dollar,” said Francisco Mayobre Lence, first vice president of the BCC.
BCC Prime Minister: “There is no other option”
Of course, after hearing about the USD ban in Cuba, members of the cryptocurrency community wanted Cuba to adopt digital currencies, as El Salvador recently did with Bitcoin. “It’s like [a] 50 years of embargo. It’s really depressing, ”wrote one person on Reddit about Cuba’s situation with America. “Are you going to take crypto now?” another Redditor asked on the r / cryptocurrency thread. Another crypto enthusiast responded to the question, saying:
I doubt they want to be the last Latin American country to do this.
The Prime Minister of the Cuban Central Bank, Marta Sabina Wilson González, said during the discussion that Cuba had no choice but to make the decision. “We had no choice but to take this action, which we explain at the round table, as we always do when it comes to an action that affects the people who will understand that there is no other option.” said the minister.
What do you think of Cuba restricting the use of US dollars in the country? Let us know what you think on this matter in the comments below.
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