The Central Bank of Cuba announced the introduction of new 2,000 and 5,000 peso banknotes as part of a strategy to facilitate cash transactions and improve the functioning of the financial system.
According to a report from the official Cuban News Channel, the measure addresses the need to expand the monetary cone in a context where the use of cash encounters difficulties with the current denominations.
Authorities from the institution explained that the introduction of these new banknotes aims to reduce the operational costs associated with handling cash, which currently relies heavily on 500 and 1,000 peso bills.
The Vice President of the Central Bank of Cuba, Alberto Javier Quiñones, stated that the measure will also allow for greater efficiency in bank branches and the provision of financial services.
He also noted that cash will continue to be a valid means of payment in the country, although he reiterated that efforts to increase the use of digital payments are ongoing.
The authorities clarified that the new banknotes will circulate alongside the existing ones and that their introduction will be gradual within the monetary circulation.
Quiñones also emphasized that the use of higher denominations will facilitate the logistics of cash transportation, reducing costs for banks, businesses, and other stakeholders involved in the chain.
For his part, the director of issuance and currency of the Central Bank, Julio Antonio Pérez Álvarez, explained the features of the new banknotes, which will include images of historical figures such as Mariana Grajales and Celia Sánchez.
The measure comes in the context of a growing use of cash in the Cuban economy, amid limitations in electronic payment systems and difficulties in accessing banking services.
The introduction of the new 2,000 and 5,000 peso bills in Cuba has not only confirmed the extent of the economic crisis but has also triggered a wave of reactions on social media.
Many Cubans have summed up their reality with a phrase that is as brief as it is devastating: “My salary on a bill.”
The announcement from the Central Bank of Cuba comes amidst sustained inflation and a rapid decline in the purchasing power of the peso, which is currently trading in the informal market at around 510 CUP per dollar.
In that context, the measure is more a sign of economic decline than a solution.
Filed under: