Central Bank Introduces Legal Channel for Private Sector Currency Exchange in Cuba

The Central Bank of Cuba (BCC) has unveiled a new official currency exchange market designed to gradually facilitate legal currency buying and selling by the private sector and the general population.

Positioned as part of the government's Macroeconomic Stabilization Program aimed at "correcting distortions and revitalizing the economy," this initiative involves the establishment of a new official exchange rate, details of which are available on the BCC's website.

Ian Pedro Carbonell, director of Macroeconomic Policies at the Central Bank, noted that non-state entities can acquire foreign currency up to an amount equivalent to 50% of their average gross income from the previous quarter.

"Non-state entities that previously lacked legal access to foreign currency can now participate in the market through their commercial banks, utilizing their bank accounts," Carbonell explained.

Self-employed individuals will "gain access to the exchange market without needing to handle cash, as transactions will be conducted from fiscal accounts," the official added.

Individuals will be able to sell currency at banks and currency exchange houses (CADECA) at what the BCC describes as a "more attractive" rate, without the risks associated with the informal market, according to the regime.

For purchases, a limit of up to 100 dollars per transaction remains in place, using the current appointment system.

As reported by Cubadebate, the goal of this measure is to channel transactions that predominantly occur in the informal market into the formal financial system.

Carbonell emphasized that the primary aim is to organize currency flows, enhance the role of banks as intermediaries, and establish an "official, transparent, and legal" market that mitigates volatility and speculation impacting both households and businesses.

While the government asserts that the ultimate goal is to converge to a single exchange rate, it acknowledges the skepticism among Cubans regarding the regime's initiative.

Authorities admit that the new exchange market will not immediately eliminate the informal market, but they hope it will help streamline currency flows, boost exports, and create a more favorable environment for investments and business ventures.

The significant uncertainty remains the specific value of the new rate, which will be officially disclosed soon and will determine the real impact of the measure on Cubans' wallets amid high inflation, suppressed wages, and a deep economic crisis.