More than 20 banks have stopped processing transactions involving Cuba since former President Donald Trump tightened U.S. sanctions on the island nation.
Cuba, June 13, 2021 /AlexaBlockchain/ – Cuba has announced to temporarily suspended US dollar bank deposits nationwide, blaming tighter U.S. sanctions that are restricting its ability to use greenbacks abroad, although it will still accept transfers.
- “It is ever more difficult for Cuba to find international banking or financing institutions willing to receive, convert or process U.S. currency in cash,” the Cuban Central Bank said in a statement shared by state-run media.
- Contraty to the reason cited by the central bank, some Cubans and analysts speculated it was an attempt to control the black market price of the dollar. That has risen to more than twice the official exchange rate since the import-dependent country started opening stores selling in hard currency and stopped selling greenbacks due to a cash crunch.
- More than 20 banks have stopped processing transactions involving Cuba since former President Donald Trump tightened U.S. sanctions on the island nation, Central Bank Vice President Yamile Berra Cires said in a roundtable discussion on state television.
- For many years, Cuba had a 10% tax on dollars, citing how difficult it was for the government to use them because of the U.S. embargo. But it lifted that tax last year as it opened more shops selling in hard cash rather than in the local currency.
- Customers will have until June 21 to deposit dollars before the suspension takes effect.