On Friday, a video circulated on social media revealing the struggles of numerous individuals attempting to withdraw cash from a bank in Havana, an image that encapsulates the severe banking crisis gripping Cuba.
The short clip, posted by Facebook user Liena López Delgado, captured the crowd gathered outside Branch 263 of the Banco Metropolitano, located at the intersection of Monte and Carmen, marking the border between the Centro Habana and La Habana Vieja municipalities.
Reactions to the video echoed the frustration stemming from the challenges in accessing cash. "This is the reality of Cuba," one commenter encapsulated.
Another user shared her ordeal of struggling to retrieve money from her bank account after selling her house. She explained that the bank disbursed the funds gradually, claiming they were unable to provide the entire amount at once. She ended up paying 1,000 pesos for every 5,000 she needed to withdraw through a third party.
Comments also linked the cash shortage to everyday hardships. "Everyone is scrambling for food due to hunger, many can't even bathe," another user remarked, illustrating how the struggle to access cash intertwines with other shortages affecting Cubans.
"That's why I don't trust banks with my money. I am my own bank. Poor pensioners and others, we've never seen anything like this," a user expressed in the video comments, summarizing the exasperation of millions of Cubans facing a system that denies them access to their own funds.
The Endless Wait: Long Lines at Havana Banks
Long queues at Havana banks have become the norm, with waits sometimes exceeding eight hours.
In July, the Central Bank of Cuba (BCC) issued Resolution 74/2026, removing the 5,000-peso limit on transactions between economic actors. This measure was seen as an acknowledgment of the failure of the government's banking policies implemented in August 2023.
Recently, the BCC introduced new banknotes in denominations of 10,000 and 20,000 pesos in an effort to curb rampant inflation.
Private Sector Steps In Amid Cash Shortage
The National Assembly of People's Power (ANPP) has instructed the government and the BCC to adopt new measures to enhance banking services for the public.
The cash scarcity has even forced private businesses to take over certain banking functions. In Guantánamo, 113 establishments are handling pension payments for over 3,000 retirees due to banks' inability to provide this service. Meanwhile, in Sancti Spíritus, some businesses are imposing surcharges of up to 40% for payments made via transfer.
Understanding Cuba's Banking Challenges
What are the main reasons for the banking crisis in Cuba?
The banking crisis in Cuba is largely attributed to the government's failed banking policies, inflation, and the general economic instability in the country, which has led to cash shortages and long waits at banks.
How is the private sector addressing the cash shortage in Cuba?
Private businesses in Cuba have stepped in to fill the gap left by banks, with some taking on responsibilities like pension payments and others applying surcharges for electronic transactions to compensate for the lack of cash.
What measures has the Central Bank of Cuba taken to address the crisis?
The Central Bank of Cuba has removed transaction limits and introduced higher denomination banknotes to combat inflation, although these measures have yet to significantly alleviate the crisis.