Latin America

Judi Lynn

(160,655 posts) Tue Apr 11, 2023, 12:59 AM Apr 2023

Cuba announces surprise reversal of US dollar deposit ban

Tuesday, April 11, 2023 at 7:25 AM by © AFP 2022

Cuba's government on Monday announced a surprise lifting of its ban on US dollar deposits in banks, reversing a policy which had been in place across the communist island nation since June 2021. "From this moment on, financial and banking institutions will accept cash deposits of US dollars in bank accounts," said a Central Bank of Cuba (BCC) resolution published Monday in the country's Official Gazette.

The Cuban government had announced the ban almost two years ago, saying at the time that the move was due to continuing difficulties caused by the ongoing US embargo. The policy reversal comes as the island faces its worst economic crisis in three decades, with mounting shortages of food, medicines and fuel worsening in recent weeks.

However it is also seeing its vital tourism industry pick up following a collapse during the pandemic, which the government cited as one of the reasons for the move on Monday. Cuba has been subject to broad US sanctions since 1962, hindering its government's ability to transact in dollars.

After a relative easing under the presidency of Barack Obama, sanctions were ramped up during Donald Trump's tenure in the White House. During his administration's final days in office in January 2021, the United States added Cuba back to its list of state sponsors of terrorism.

Read more: https://www.tuko.co.ke/business-economy/501662-cuba-announces-surprise-reversal-dollar-deposit-ban/

2 replies

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Cuba announces surprise reversal of US dollar deposit ban (Original Post) Judi Lynn Apr 2023 OP

Another bad Trump policy. Frasier Balzov Apr 2023 #1

I have never understood our policy toward Cuba lapfog_1 Apr 2023 #2

Frasier Balzov

(2,674 posts)

1. Another bad Trump policy.

Reply to Judi Lynn (Original post)

Tue Apr 11, 2023, 01:08 AM

Apr 2023

Good grief, that Trump pandered to right wingers in every possible way.

Just another reason to keep him out of power.

lapfog_1

(29,234 posts)

2. I have never understood our policy toward Cuba

Reply to Judi Lynn (Original post)

Tue Apr 11, 2023, 01:18 AM

Apr 2023

we have had 60 year plus of embargo and non-relations... on the theory that someday, maybe, communists will fall in Cuba.

At the same time, we have reversed course in China, essentially making China our manufacturing partner and opened trade in the hope that Western capitalism will take root and democracy will emerge.

I submit that BOTH policies have failed. China is now capitalistic and we now depend on them for a lot of our goods, but they are as authoritarian as ever. Cuba had not moved even an inch to democracy but remains hopeful that the trade embargo with the US will ease and tourists will return.

I think a more even handed approach to both countries is needed... we open more trade and tourism as they move to make and keep democratic reforms... but more carrot and less stick with Cuba, and more stick and less carrot with China.

But what the hell do I know.

I think the big reason for insanity with Cuba has to do with Cubans that migrated to Florida and their hope to return to pre-Castro oligarchy (large land owning families). Even today they think they will return to Cuba and get back the land. Its not going to happen and we should be clear about that.

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