Cuban President Díaz-Canel highlights importance of new foreign exchange system

Cuban President Miguel Díaz-Canel highlighted implementing a new foreign exchange system on the island, which is being applied as of August 4 and aimed at capturing freely convertible currencies through national banks.

“The beginning of the implementation of the foreign exchange market is one of the measures conceived to mobilize financial resources and supplies in the shortest possible time. None, by itself, will solve all the problems. We will not stop in the construction of a better country,” the Cuban president wrote on Twitter.

On August 3, Deputy Prime Minister Alejandro Gil announced that banking operations to buy hard currencies (U.S. dollar, euro, Canadian dollar, franc, pound sterling, among other currencies) would begin at about five times the current exchange rate (US$1 for CUP 24).

The operations will be carried out in banks, airports, hotels, and state-owned exchange houses and aim to curb currency resellers in the informal market.

The Minister of Economy and Planning also specified that, for the time being, no foreign currency would be sold to the population, even though it will be duly disclosed when it is decided to start this type of offer, which will allow consolidating an exchange market on the island.

He also specified that the business sector would maintain its operations according to the official exchange rate.

Cuba is going through a deep economic crisis, particularly with a foreign currency deficit in its financial reserves, a situation worsened by the sanctions imposed by the U.S. and the tightening of the economic, commercial, and financial blockade applied to the island since 1962.

With information from Sputnik