Cuba suspends dollar cash deposits on the island

By on June 11, 2021 0

The Central Bank of Cuba (BCC) has “temporarily” suspended dollar cash deposits on the island, a measure that applies to both Cubans and foreigners, state newspaper Granma reported Thursday.

The measure will come into force on the next June 21st, the day when Cuban banks will no longer be able to receive dollars to deposit or exchange for the national currency.

The decision, said the BCC, comes “before Obstacles of the US economic blockade for the domestic banking system to deposit dollar cash abroad Americans who are collected in the country, ”Granma reported.

“It is a measure of protection of the Cuban financial system, which only applies to the currency of the United States in cash. Not to existing accounts in that currency, ”the post said.

Deposits in other foreign currencies will not be affected. Electronic transfers in dollars are also not prevented.

The BCC has not indicated when the restriction will be lifted.

Quoting the BBC, the daily Granma says the decision is “indispensable” given the restrictions at “unusual levels” that Cuba has had to deposit the US dollar notes it receives in international banks.

This “because of the extraterritorial effects of the blockade and the measures adopted by the United States over the past four years and which remain in full force to this day”.

In addition, since last year, the Cuban government has removed a 10% tax on dollar deposits, as part of the measures to deal with the pandemic, deposits increased in american coins on the island.

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