The Cuban government will start accepting cash in foreign currency again: "We are losing a lot of money."

The Cuban government will once again accept payments in foreign currency in cash, in sectors such as tourism and stores, a measure that had been suspended in 2021.

In the third ordinary session of the National Assembly, in the tenth legislature, Prime Minister Manuel Marrero announced regulations affecting micro, small, and medium-sized enterprises (MSMEs) and the private sector in general.

Marrero indicated that these are measures to advance the country's "Macroeconomic Stabilization Program" and that some are aimed at controlling the "partial dollarization of the economy".

Among the "specific measures" approved by the government are:

• Establish the payment of tariffs in foreign currency for imports in the non-state sector.
• Implement gradually and selectively charging port services in foreign currency.
• Accepting cash in foreign currency in certain sectors and activities, such as tourism.

Regarding the first of these three measures, Marrero said that the State will not continue "allowing so much merchandise to enter the country" and that private sector importers must pay taxes in the national currency.

Regarding the third measure, he specified that the process of banking is set aside, as it is imperative for the government to "accept cash in foreign currency" in state institutions.

"We are losing a lot of money. We are not going to eliminate banking, but tourists cannot arrive and not reserve an offer because the cards do not work. This measure will not only affect tourism, but also stores and other sectors," he stated.

The government approved a new mechanism for the allocation and management of foreign currency that repeals Resolution 115/2020, signed by the ousted former "corrupt" minister, Alejandro Gil.

The mechanism allows them to carry out a "sanitation process" of the state accounts and approve "closed schemes" for exports.

At the extraordinary meeting of the Council of Ministers that took place on July 12, Marrero stated that the initial regulations for the private sector had legal gaps that led to "distortions."

It must be made clear the role that corresponds to each actor in the country's economy, and the Constitution of the Republic makes it clear that the main actor is the socialist state enterprise," he emphasized.

In 2021, the Cuban government "temporarily" suspended the acceptance of bank deposits in US dollars. The Central Bank of Cuba approved the measure during the summer season.

The General Customs of the Republic announced at that time that the payment of tariffs and services for import at the border must be made in other currencies accepted by the BCC or through foreign currency cards operating in the country.

Since then, in Cuba, only cash in the national currency could be used for payment, and foreign or domestic debit/credit cards could be used for payments in foreign currency, confirming the increase in dollarization in the country.

Three years have passed and the measures taken by the late Gil, Miguel Díaz-Canel, and Marrero did not yield the expected results.

Now the regime is coming with a "turn of the screw." It intensifies its mechanisms of economic control and regulations against the private sector. The people could face a much harsher period of shortages than they already do.