Cuban leader Miguel Díaz-Canel has blamed the private sector for the shortage of cash in the country's ATMs since the banking process began in Cuba. In his program on the YouTube platform of Presidencia Cuba, Díaz-Canel cited several statements purportedly sent by citizens, alleging that many small and medium-sized enterprises (SMEs) demand cash payments instead of participating in the banking process.
"This has to do with the control that state entities must exercise to eliminate this distortion. We need to be more demanding with those who still haven't integrated into the banking process. The population is telling us what needs to be done and where the dissatisfaction lies," Díaz-Canel stated.
Accelerated Banking Process Amid Economic Crisis
The banking process in Cuba began a few years ago, progressing slowly until the government decided to accelerate it in August 2023, despite lacking the infrastructure and technological preparation for it. This decision came during a period of soaring inflation and a severe economic crisis in the country.
The situation led many people, unfamiliar with new technologies and unaware of how to make electronic transfers, to endure long lines at ATMs without being able to withdraw cash for purchases or to pay for basic services because the bank lacked cash.
Juana Lilia Delgado Portal, President of the Central Bank of Cuba (BCC), assured that the problem has a solution and emphasized that "there is more money in the country than ever," although it does not reach the majority of the population.
"It's not that there isn't money in the economy; there is more money than ever, but the flow of that money has reversed. More money is exiting the banking system than returning; this disrupts the entire cash movement cycle and makes it difficult to meet cash demands," she admitted.
In her view, the cash exiting the banking system is concentrated in a few hands. Therefore, she believes the state should act to ensure that cash returns to the banking system through the proper channels, but she did not detail the strategy to achieve this.
Understanding Cuba's Banking Crisis
Here are some frequently asked questions to help you understand the ongoing banking crisis in Cuba and the government's response.
Why is there a cash shortage in Cuban ATMs?
The Cuban government attributes the cash shortage to the private sector's preference for cash payments over banking transactions. Additionally, the banking process has been accelerated without adequate infrastructure, further complicating the issue.
What actions is the Cuban government taking to address the cash shortage?
The government is focusing on increasing control over state entities and demanding that businesses integrate into the banking process. However, specific strategies to ensure cash returns to the banking system have not been detailed.
How has the economic crisis affected the banking process in Cuba?
The accelerated banking process during a period of high inflation and severe economic crisis has led to significant challenges, including long lines at ATMs and difficulties in accessing cash for basic needs.