Dollar ban in Cuba is the Castro dictatorship’s latest scam

Since taking power in 1959, the Castro dictatorship has operated like an organized crime syndicate, conceiving elaborate scams to rip off Cubans as well as international businesses and governments. The sudden ban on U.S. dollars is just their latest racket.

Emilio Morales explains in Diario de Cuba:

Cuba and Dollars: The Regime Resorts to Another Scam

With the new measure, the regime once again turns to scare tactics to rob and subdue a population that has been fleeced countless times before.

Strangled by its own ineptitude at managing the country’s finances and economy, the Cuban regime is turning to its old trick of scaring people in order to subdue a population that has been fleeced countless times before, ever since Fidel Castro rose to power.

Thus, the Government is temporarily suspending the acceptance of bank deposits in US dollar notes. The measure will take effect on June 21. Cubans will have until the 20th to deposit dollar notes in their USD bank accounts. According to the Central Bank of Cuba (BCC), as of June 21, natural and legal persons, both Cuban and foreign, will not be able to make deposits, or carry out any other transaction, in US dollars at Cuban banks.

The measure is a ruse to get people to deposit any dollars they have “under the mattress,” as the regime has run out of dollars and does not have the money to pay the few suppliers left on its list. Moreover, Exchange houses (CADECAS) and banks are not taking in dollars, as people prefer to sell them on the street, at a rate of 1=70 CUP. The black market has dominated the currency exchange war and overwhelmed banks and CADECAS, thanks to the grandiose and misguided “Ordering Task,” supposedly implemented to reform the country’s finances.

In reality, what does this measure mean? Very simple: as of June 21, all deposits in dollar accounts will have to be made in other currencies, a maneuver that aims to place millions of dollars in the regime’s hands, thanks to the mandatory currency exchange charge. Every time a deposit enters one of these accounts, the bank will levy a tax based on the exchange rate that it establishes for each currency with respect to the dollar.

In other words, one is forced to have an account in dollars, but can only deposit in a currency other than the dollar, being forced to pay the exchange fee imposed by the Central Bank of Cuba.

In this way the regime aims to continue bleeding all those Cuban exiles who send remittances in dollars. Now it will force them to send them in another currency, and will apply an exchange charge when deposits are made in the accounts of the beneficiaries. Through this measure the regime also intends to eliminate the informal market for the physical sending of remittances, by forcing exiles to send dollars electronically.

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1 thought on “Dollar ban in Cuba is the Castro dictatorship’s latest scam”

  1. Castro, Inc. counts on the “diaspora” to play ball, even though everyone knows there is gross exploitation going on, not to say extortion. Those Cubans on the island accustomed to “resolver” by way of remittances are like people living off a pension, and they absolutely depend on that continuing. The ones who send the money feel obligated to keep doing it, and for the most part they will. It’s a brilliant racket, and it works.

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