From June 21 you will not be able to deposit dollars in cash in Cuba

This protection measure for the Cuban financial system is only with the US currency, with which remittances sent from the United States will be the most affected

Photo: Reforma Agency

From the 21 of June, neither Cubans, nor island tourists will be able to deposit dollars in cash in bank accounts within the island. This measure was taken by the Central Bank of Cuba (BCC ) as a way to protect the Cuban financial system which has been applied only to the US currency.

The new law will affect mainly Cubans in Cuba who used to receive dollars in cash, probably product of remittances or tips. Dollars can no longer be deposited or exchanged for Cuban pesos.

According to the Cuban government, due to the “economic blockade” of the United States on the Caribbean island, the BCC finds it impossible to deposit those dollars in cash that is collected in the country in other banks abroad.

It should be clarified that if it is another currency foreign currency, it may be deposited or exchanged at the Central Bank of Cuba without any inconvenience.

As a result of the pandemic, in 2020, the Cuban government had eliminated a tax of 10% charged when depositing US currency in a Cuban bank account. This caused the cash deposits in dollars to increase in banks and the government cannot deposit it in another entity to change that currency.

This measure will be subject to suspension, if The government of US President Joe Biden suspends the restriction measures imposed by former President Donald Trump on the island 4 years ago.

Who will be the most affected

Obviously the first affected by this prohibition are precisely the Cubans who have the opportunity to receive currency in cash. In this case, Cubans who work in the tourism sector, although it has not yet been has reactivated. And Cubans who receive remittances from their relatives from the United States.

Most likely, now, is that remittances must be sent in a currency other than the US dollar. For experts this is like transferring the “economic embargo” to families. However, for others, is simply a strategy to raise dollars, since from here to 21 June, when When the new law comes into effect, the government will receive a huge amount of US currency.

This measure has been taken less than a month after the civic platform “Humanist Cuba” opened a petition for the Cuban government to allow remittances sent by Cuban immigrants to be withdrawn in US dollars and not in Cuban peso as has imposed by the government. Obviously this will no longer be possible.

After the withdrawal of Western Union from the United States, few options were left on the island for sending remittances. Among the few ways by which Cubans abroad can send money to their relatives on the island from the United States, the following stand out: AIS cards, TransferMóvil, Small World FS, SendValu, QvaPay, Etectsa.

Meanwhile, since the president of the United States came to power, Cubans continue to wait for him to make effective one of his promises during campaign times: “resume sending remittances to Cuba” but the most recent thing that was said about it is that it was not a priority for the moment.