Cuba Hits Back at U.S. Sanctions, Suspends Deposits in U.S. Dollars

The Central Bank of Cuba (BCC) announced Thursday that Cuban banking and financial institutions will not accept cash deposits in U.S. dollars from 21 June due to U.S. sanctions that make it difficult for the island to use greenbacks abroad, according to Miami Herald.

Shortly before the Cuban government was due to present its annual resolution to end the crippling, decades-old U.S. trade embargo at the UNGA, BCC said a decision has been made to temporarily stop the acceptance of U.S. dollars by the Cuban banking and finance system given the obstacles imposed by the U.S. economic blockade for the Cuban banking system in that regard.

The statement further said that the measure, which BCC described as protective, will not affect operations involving transfers or cash deposits of other freely convertible currencies accepted in Cuba.

Yet, there has been speculations by Cubans and experts that this is was an attempt to control the black market price of the dollar that has soared in recent months to about 70 Cuban pesos, about triple the official exchange rate of 24 pesos, especially after exchanging was limited to no more than $300 at the airport’s bureau de change.

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