The Cuban government on Monday unexpectedly announced the lifting of the ban on deposits in US dollars in the banks of the Latin American country, abandoning its decision, which has been in force in the island nation since June 2021, reports France-Presse (AFP) on April 11.
“From now on, financial and banking institutions will accept cash deposits in US dollars in bank accounts,” – says the decision of the Central Bank of Cuba, published the day before in the official newspaper.
The Cuban government announced the ban almost two years ago, saying at the time that the move was due to ongoing difficulties caused by the US trade and economic restrictions in place.
The policy change comes as Liberty Island faces its worst economic crisis in three decades. In recent weeks, shortages of food, medicine and fuel have worsened in the country. At the same time, Cuba is seeing a rise in the island’s vital tourism industry after it collapsed during the Covid-19 pandemic, AFP notes.
Cuba has been subject to extensive US sanctions since 1962, which has prevented its government from transacting in dollars. After a relative easing of the sanctions policy under the President Barack Obama restrictions were tightened during the stay Donald Trump in the White House. In the final days of his administration in January 2021, the United States again added Cuba to its list of “State Sponsors of Terrorism”.
Since then, the rate of the national currency – the Cuban peso – has fallen against the US dollar from the level of 24 to the official 120 per $ 1. On the local black market, the peso rate reaches 185 per $ 1.
Joe Biden maintained the previous administration’s restrictions on Cuba, while Secretary of State Anthony Blinken said last month that the US has no plans to revoke the status of a “state sponsor of terrorism” in relation to a neighboring country.
