Cubans Express Doubts and Frustration Towards Banking System
A recent report by the international news agency AFP has shed light on the skepticism and apprehension felt by many Cubans towards the banking process approved by the Cuban regime. The decision to implement measures to prevent the loss of liquidity in state bank vaults has left citizens with concerns about their savings and access to funds.
One young Cuban interviewed by AFP expressed his lack of trust in the banking system, stating, “If I had 20,000 pesos right now, I wouldn’t put it in the bank.” Many others echoed his sentiment by highlighting various issues they have encountered while trying to access their funds. Limited availability of cash, regular connection problems, and restrictions on withdrawal amounts have contributed to a lack of confidence in the system.
The concerns extend beyond just the urban population, with some recognizing that those living in rural settlements do not have access to bank branches or ATMs. The impact of the measure on these segments of the population has been a point of contention among Cubans.
Despite the pro-government media attempting to portray the banking process as beneficial to the population, such statements are being widely disputed by the majority of independent and international media with a presence in Cuba. Independent sources continue to collect testimonies of individuals who express their reservations about the banking system.
The outdated banking system in Cuba, characterized by decimated ATMs due to a lack of spare parts, unreliable data connections, and a chronic shortage of banknotes, has further eroded trust among the population. Cubans believe that the main threat to their savings lies in the incapacity and self-interest of those in power.
Similar concerns were raised earlier when the Cuban regime allowed US dollars to be deposited into bank accounts. However, the conversion of deposits into virtual dollars did little to inspire confidence among Cubans who remained wary of putting their savings into the bank.
The Cuban regime started preparing citizens psychologically for the new banking process in mid-July before formally announcing it. The President of the Central Bank of Cuba, Joaquin Alonso Vazquez, appeared on national television to address the issue, pointing out that more than 1,000 million pesos had been withdrawn from banks since 2020 and not returned. He emphasized the potential risks associated with this money being kept outside of the banking system.
Despite government approval, the new measures have faced strong criticism from several Cuban economists who view them as a financial corralito and a threat to the private sector. Some economists argue that the implementation of the banking process lacks a comprehensive analysis of the problem and its solution.
The concerns extend even to new economic actors in the country who have emerged as part of the regime’s survival strategy. Miguel Diaz-Canel, a deputy and owner of a small business, warned about the potential closure of businesses due to the banking measures, calling for a more thorough examination of the problem and its implications.
As doubts and frustration towards the banking system persist among Cubans, the government will need to address the concerns raised by its citizens while ensuring the stability and functionality of the financial sector.