Cuban leader Miguel Díaz-Canel has once again proposed one of his "excellent formulas" to address the financial crisis that he and his administration have created, leaving Cubans to suffer the severe consequences. This time, speaking from the municipality of Unión de Reyes in Matanzas, the president stated, "The first thing we need to do is bank all agricultural markets, both state and non-state, all points of sale, and all private food businesses. By doing so, we would be capturing at least 70% of the money that leaves the bank every month."
This idea, touted by the government through various channels and voices, has yet to materialize due to resistance from certain sectors. The lack of cash availability prevents them from using electronically transferred funds effectively. Access to cash in Cuba has become a major ordeal and a headache for the island's residents, a problem the government has failed to resolve for several months.
In a recent YouTube program hosted by Díaz-Canel, Juana Lilia Delgado Portal, the president of the Central Bank of Cuba (BCC), was invited. She insisted that there is more money in the country than ever before, although it does not reach the majority of the population. "It's not that there isn't money in the economy; there's more money than ever. But the flow of that money has reversed. More money is leaving the banking system than returning, disrupting the entire cash cycle and making it difficult to meet cash demands," she admitted.
"Another characteristic is that the cash leaving the banking system is concentrated in a few hands. This is one of the reasons we say we need to act to ensure that cash returns to the banking system through the appropriate channels," she added.
In the same program, Díaz-Canel took the opportunity to blame the private sector for the lack of cash in ATMs. "This issue is related to the control that state entities need to exert to eliminate this distortion. We have to be more stringent with those who have not yet integrated into the banking process. The population is telling us what needs to be done and where the dissatisfactions lie," he said.
Earlier this year, when a package of economic measures was introduced, which the public largely disapproved of, the president claimed that these were "the definitive path to prosperity." "With these measures, we will gradually reorganize the economy. With these measures, we will gradually reach a better situation and pave the definitive path to the prosperity and development that this heroic people deserve," the leader said.
Months later, the situation shows no signs of improvement and has, in fact, worsened, leaving the population increasingly impoverished. Meanwhile, Díaz-Canel continues to travel from province to province, repeating the same empty rhetoric that has yet to deliver tangible results.
Understanding Cuba's Banking Challenges
Here are some common questions and answers regarding the banking and financial challenges faced in Cuba, particularly in relation to Díaz-Canel's recent statements.
Why is Díaz-Canel focusing on banking agricultural markets?
Díaz-Canel believes that by banking agricultural markets, both state and private, the government can capture a significant portion of the money that leaves banks each month, which he estimates to be at least 70%.
What are the main obstacles to this banking initiative?
The primary obstacles include resistance from certain sectors and the lack of cash availability, which prevents effective use of electronically transferred funds. This has turned accessing cash into a significant challenge for Cubans.
What role does the Central Bank of Cuba play in this situation?
The president of the Central Bank of Cuba, Juana Lilia Delgado Portal, has stated that although there is more money in the economy than ever before, the flow of money has reversed, with more money leaving the banking system than returning, complicating the cash cycle.