It is not banking, it is a corralito: Let's call a spade a spade

The Cuban government has launched a total and absolute campaign of what they call “banking.” In recent weeks we have seen how they take measure after measure with the aim of promoting banking services for the payment of bills, invoices, etc. as well as measures to prevent citizens and MSME companies from accessing cash and/or paying with it. As the saying goes, in Cuba what is not prohibited is strictly enforced.

Among these measures, the Cuban government has limited cash transactions between companies to five thousand Cuban pesos a day, as part of the measures to mitigate the printed cash crisis on the island. This measure will affect companies, MSMEs, self-employed workers. own, cooperatives and other forms of management.

The Central Bank of Cuba (BCC) has imposedstrong control over cash as part of the measures for the banking of transactions in the country. The BCC announced that the use of cash will be reduced as much as possible, facilitating the use of electronic payment methods and reducing the use of cash with the aim of guaranteeing that the money does not leave the financial institution.

The crisis due to lack of cash in ATMs in Cuba has spread, affecting several provinces and aggravating the situation of thousands of families on the island. Reports from Santiago de Cuba, Holguín, Las Tunas and elsewhere indicate a widespread lack of cash, which has led people to borrow money to feed their children.

The Electric Company of Havana announced the suspension of cash collection in four of its commercial offices as of August 1st. Customers in the towns of Plaza, Nuevo Vedado, Playa and Santa Fe will no longer be able to pay their electricity bill at the windows of those establishments, nor will their meter readers provide this service.

For many Cubans it is clear what the alleged “banking”, a financial crisis that has its cause in rampant inflation, which has caused a violent devaluation of the Cuban peso which in turn has generated an increasing need for cash. Money that the government does not have or does not want to release.

So let's say it clearly, a banking corralito has been imposed in Cuba.

The massive flight of money from banks can put them and financial systems in danger. Countries can issue/print currency during times of crisis, which the Cuban government could do if it had the money to pay for the issuance of new banknotes abroad or to buy the raw materials to print money in the country. For whatever reason, the Cuban government does not have the capacity to print new banknotes, an assumption that is based on the widespread use of low-denomination and very deteriorated banknotes.

The regime has opted for the financial corralito. They think that with this they can “kill two birds with one stone”, reduce the drain on money from the banking system and reduce inflation and depreciation of the Cuban peso. They will achieve neither one nor the other.

The government tries to disguise a corralito through an alleged "banking" strategy. To this end, they promote measures that encourage people to keep their funds in the banking system (payment of services, electricity, telephone), or directly force the population and companies to make payments only through bank transfers and/or payment applications. However, behind this façade of promoting banking access lies the objective of limiting withdrawals or movements of funds and people's access to their savings.

So let's say it clearly, a banking corralito has been imposed in Cuba.

What can you do in this situation?

Keep the minimum necessary in the bank to pay for services that only allow bank payments exclusively,the rest of the money, take it out whenever you can. It's better than this "under the mattress"

Diversify your savings,buy dollars and euros and keep your savings in these currencies,The Cuban peso will continue to devalue continuously, large amounts of weights should not be kept. International currencies are safe havens in situations of inflation and corralito.

Being on top of the news, the regime will continue making changes, disguised as banking and efficiency, so that it does not catch you off guard.

Then don't say that they didn't warn you.