Cuba To Suspend In-Person Deposits of US Dollars

A man walks down a street in Havana, Cuba, May 29, 2021. | Photo: Xinhua

Published 11 June 2021

The National Bank explained that the intensification of the U.S. blockade against Cuba affects its domestic banking system.

 

President Miguel Diaz-Canel's administration announced that Cuban banks will temporarily suspend in-person deposits of U.S. dollars starting from June 21.

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The National Bank President Marta Sabina explained that the intensification of the U.S. blockade against her country affects the national banking system.

"People will be permitted to withdraw U.S. dollars from their bank accounts, transfer funds, and make in-person deposits using other foreign currencies," she said.

Carlos Fernandez, director-general for U.S. affairs at Cuba's Foreign Ministry, said that the new measure aims to protect the country's financial system.

"Our people and the international community know that the U.S. blockade is aimed at causing damages to the Cuban economy," he said, adding that the U.S. unilateral policy toward the island is intended to affect the country's income sources and living standards of the population.

Most probably, the immediate consequence of the latest monetary decision will be that the Euro will displace the U.S. dollar as the most frequently used currency among the population.

This will happen, however, after a partial dollarization of the Cuban economy that began to be accentuated in the last year. This week, the Euro was quoted at 29 pesos and the U.S. dollar at 24 pesos at official exchange sites.