Cuba's Central Bank Adapts Rules Amidst Cash Collapse

Qué pasó

The Central Bank of Cuba (BCC) has announced a series of measures to address a severe cash shortage and encourage the use of digital payments. These changes aim to adapt to the country's ongoing economic challenges, including inflation and liquidity issues.

A significant shift is the removal of the 5,000 Cuban pesos (CUP) limit for cash transactions between economic entities. This restriction, in place since 2023, will be replaced by agreements between companies and their banks, based on revenue and digital transaction usage.

Dónde y cuándo

These new regulations were announced by the Central Bank of Cuba in July 2026. The measures are being implemented across the island, affecting financial transactions for businesses, individuals, and particularly retirees who rely heavily on cash.

The situation arises from a persistent economic crisis characterized by high fiscal deficits, money emissions, inflation, and supply chain disruptions, all contributing to a lack of physical currency.

Por qué es importante

These adjustments are crucial as Cuba grapples with a deep economic crisis that has devalued the national currency and made cash scarce. The BCC's actions reflect an attempt to stabilize the financial system and ensure smoother economic activity.

By encouraging digital transactions and managing cash distribution, the bank hopes to alleviate the daily struggles faced by many Cubans, especially pensioners, who often face long queues for basic cash withdrawals.

Qué dicen las partes

Juana Lilia Delgado Portal, the President of the Central Bank, acknowledged that the cash shortage is a symptom of the broader economic crisis. She highlighted that over 80% of salaries and pensions are paid via bank cards, creating immense pressure on banks during simultaneous withdrawal attempts.

The bank is introducing new banknotes of 2,000 and 5,000 CUP to reflect inflation and has expanded the 'Caja Extra' service, allowing private and state retailers to distribute cash to pensioners, reducing pressure on bank branches.

Qué viene ahora

The BCC plans to circulate the new banknotes and expand the Caja Extra service to more establishments. They are also reinforcing incentives for digital payments, offering immediate fund reception for merchants and bonuses for consumers.

While the Central Bank insists cash will continue to circulate, these measures signal a strategic push towards greater digitalization. The effectiveness of these changes will be closely watched as Cuba navigates its ongoing economic difficulties.