The Cuban government recently declared that banks will once again be accepting cash deposits in US dollars, as a result of the relaxation of a previous embargo that had prohibited this practice.
For a period of nearly two years, individuals in Cuba experienced a restriction on their ability to deposit physical US dollars into their bank accounts and other financial institutions.
In 2021, the Cuban government implemented a prohibition, attributing it to the persistent challenges arising from the continued United States embargo.
The decision is being made in the midst of one of the most severe economic crises that Cuba has experienced in recent decades.
The resolution issued by the Central Bank of Cuba (BCC) was officially published in the Official Gazette of Cuba on Monday, thereby taking immediate effect.
The resolution further asserted that the economic pressure exerted by the United States, which was identified as the primary cause for the initial imposition of the ban, continued to persist. Consequently, it was argued that the fundamental issue underlying the situation had not been effectively addressed.
Cuba has been subjected to United States sanctions for a period exceeding six decades; nonetheless, the Trump Administration augmented the severity of the economic constraints imposed upon the country.
The imposition of sanctions has posed a growing challenge for the Central Bank of Cuba in locating international financial institutions that are prepared to accept physical US dollars from the Communist-led nation.
During the current administration led by President Joe Biden, the restrictions implemented during the Trump era have been upheld. However, Cuban and US officials have engaged in negotiations to address the issue of a significant influx of Cuban individuals seeking to move to the United States.
In the previous year, there was a notable increase in the number of Cubans apprehended while engaging in unauthorized border crossings between the United States and Mexico, reaching a record-breaking figure of 220,000 individuals.