Q&A: Cause and effects of Cuba’s cash-dollar measure

As a former Central Bank economist, Pavel Vidal sits in the catbird seat when it comes to the Central Bank’s order that state banks stop accepting cash U.S. dollars as of June 21

As a former Central Bank economist, Pavel Vidal sits in the catbird seat when it comes to the Central Bank’s order that state banks stop accepting cash U.S. dollars as of June 21. Cuban news site El Toque asked Vidal, who now teaches at Universidad Javeriana in Calí, Colombia, about the reasons and possible effects of the measure.

What do you think prompted the move?

Since there is effectively an increase in sanctions and OFAC’s persecution of transactions in the Cuban financial system, Cuban banks reduce their financial risk if they begin to stimulate entry to the country of euros and other currencies instead of dollars. This risk, in part, is being transferred to families.

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