:quality(85)/cloudfront-us-east-1.images.arcpublishing.com/infobae/OSD7XIJTZRDIHLJY6QAJO7TZ5I.jpg "The alarming shortage of cash in Cuba deepens the crisis of a population already exhausted by shortages and inflation")
The alarming shortage of cash in Cuba is deepening the crisis of a population already exhausted by shortages and inflation. Alejandro Fonseca, a 23-year-old manager of a small private food store, recently stood in line for hours at a bank in Havana to withdraw Cuban pesos from an ATM, only to find the cash had run out.
This shortage of cash has become a daily struggle for many Cubans, who are already facing blackouts, shortages of food and medicine, and lack of fuel. People are forming long lines outside banks and ATMs in search of money to pay for their daily expenses.
Experts attribute the cash shortage to various factors related to the economic crisis in Cuba, including a growing fiscal deficit, high inflation, and the hoarding of Cuban pesos by private economic actors who are distrustful of the banking system. Entrepreneurs, who must import almost everything they sell, hoard Cuban pesos in cash to exchange for foreign currencies on the informal market.
The complex Cuban monetary system, with different exchange rates and a virtual currency, further complicates the situation. Inflation in the country is reaching three digits in the informal market, while the monthly state salary is equivalent to only 14 to 20 dollars in the parallel market.
The ongoing COVID-19 pandemic and US sanctions have also exacerbated the economic challenges in Cuba, making it difficult for families to access basic necessities. Despite efforts by the government to address the cash shortage, people continue to struggle to access the money they need for daily expenses.
As designer Idelsy Rodríguez, 62, lamented, “There is no money, the ATMs are broken, and when they put money in, it is little.” The shortage of cash in Cuba is a significant issue that is adding to the hardships faced by the population.