The President of the Central Bank of Cuba (BCC) claimed that the country has more money than ever, although it does not reach the hands of the majority of the population. Juana Lilia Delgado Portal appeared this Thursday on the YouTube channel hosted by Miguel Díaz-Canel, where they discussed the financial crisis they have created, which is now impacting the people.
"It's not that there's no money in the economy; there's more money than ever. However, the flow of that money has been reversed. There's more outflow from the banking system than what returns, which disrupts the entire cash cycle and makes it difficult to meet cash demands," she admitted.
"Another characteristic is that the cash that leaves the banking system is concentrated in a few hands, and that's one of the aspects we need to address to ensure that cash returns to the banking system through the proper channels," she added.
Challenges in Accessing Cash in Cuba
Access to cash in Cuba is a severe problem. It's an ordeal for people to collect their salaries and pensions, facing long lines at banks or ATMs due to the limited availability of cash.
Despite this, Díaz-Canel continues to insist on his flawed banking process, ignoring the consequences and public dissatisfaction. "The government has yet to solve the ATM issue, making it very difficult to get cash from banks and ATMs. It's a struggle; why push for more banking if it's a problem to withdraw money?" were some of the opinions from the public that the president read, acknowledging the daily challenges Cubans face.
In Havana, a group of affected individuals reported that they had been waiting for three days to access a functioning ATM. "There's no money, the ATMs are broken, and when they do load money, it's very little," an elderly man told DW Español.
The cash shortage is so severe that some provinces are implementing drastic measures. In Sancti Spíritus, the Bank of Credit and Commerce (BANDEC) decided not to replenish the ATMs at its main branch. According to the newspaper Escambray, citizens needing cash are forced to endure long lines to be served by the teller inside the branch and can withdraw up to 5,000 pesos.
In April, the Central Bank advised users that due to the recurring cash shortages at ATMs, they should go to bodegas or other commercial establishments under the Ministry of Domestic Trade (MINCIN) to withdraw cash from their bank accounts through the "Extra Cash" service.
Understanding Cuba's Cash Crisis
To provide more insight into the ongoing cash crisis in Cuba, here are some commonly asked questions and their answers:
Why is there a cash shortage in Cuba?
The cash shortage in Cuba is due to more money leaving the banking system than returning, disrupting the cash flow cycle and concentrating cash in a few hands.
What measures are being taken to address the issue?
Measures include advising citizens to withdraw cash from bodegas or other commercial establishments under MINCIN and implementing restrictions on ATM replenishments in some provinces.
How is the public reacting to the cash shortage?
The public is highly dissatisfied, enduring long lines and expressing frustration over the difficulty in accessing their money.