Connect with us

South America

Cuba Shifts To American Dollar To Keep Economy Afloat

Published

on

Cuba

Cuba has had to do away with its Cuban Peso temporarily as the pandemic hits its economy severely. The US dollar is indeed back into Cuba something that has not happened since the fall of the Soviet Union.
Cubans will not be able to buy higher-quality products in exclusive hard currency stores.


The Cuban economy has also been suffering at the hands of low oil exports and sanctions from the America since the 1980s. It is also struggling over low oil imports from Venezuela. Its main economy is tourism which has been severely hit by private flight restrictions by the US and pandemic led slowdown in the economy.

Cuba makes use of two currency out of which one is also a convertible peso that can be used green money. Out of desperation in July, finally, opened 72 new “dollar stores”, selling everything from cheese to power drills.

Last it did so was in 1993. The dollar was taken off its economy only in 2004. At the moment, food is also scarce and there would be need of currency to make purchases. While the country has risen from the onslaught of the pandemic, its economy is too dependent on imports to feel safe about anything.

There is desperation and panic amongst the people. But the government is hoping that the introduction of the dollar will give them all some respite. According to confirmed reports, the US blocked private flights from the US to Havana and back, in a way to punish the Cuban government for supporting of the Venezuelan Leftist President and for their acts of human rights violation over pro-democratic reports in Florida, USA.

Trump was under pressure to win a vote bank in Florida which comprises predominantly conservative Cuban American population. Undeniably, the mid August announcement marks the latest hardening of US policy toward Cuba under Trump, who reversed a thaw in relations with Havana that began under his predecessor Barack Obama.

Cuba on its part, might be trying to win the American businessman PM back by making use of its currency to save itself drowning in a dwindling economic crises.

Trending

Sitemap | Copyright © 2018-2019 theforeigncode.com