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The Cuban government announced an expansion of the partial dollarization process of the economy through a set of measures that will allow for greater use of foreign currency in business, commercial, financial, and investment operations, as well as a relaxation of access to the foreign exchange market for state-owned enterprises, private actors, cooperatives, and foreign investors.
The proposals are part of the package of 176 economic and social transformations presented by Prime Minister Manuel Marrero Cruz to the National Assembly of People's Power.
The central measure is outlined in Axis 16: Scope of the Partial Dollarization of the Economy, where the Executive proposes to expand the use of foreign currency in inter-enterprise and commercial operations, as well as to replace the current closed schemes of self-financing in foreign currency with systems based on contributions derived from transactions in foreign currency.
However, the expansion of dollarization also encompasses other areas of economic activity.
Among the planned transformations is the establishment of new facilities to enable state-owned enterprises and private actors to access the foreign exchange market and operate with foreign currency.
The Government proposes to allow access to the exchange market for business structures that participate in supply chains and to develop input markets with access to foreign currency for all economic actors.
Non-state management entities will be able to deposit cash in foreign currencies into bank accounts denominated in the same currency, provided they can prove the legal source of the funds.
Additionally, it is expected to authorize the marketing of agricultural supplies and equipment in both pesos and foreign currency, as well as to promote markets for supplies in foreign currency with the participation of both natural and legal persons, both national and foreign.
In the agricultural sector, cooperatives will be able to open bank accounts abroad as well as in Cuban banks, in both pesos and foreign currencies.
Banking procedures will also be established to facilitate payments and transactions in foreign currency through magnetic cards, transfers, cash payments, and e-commerce.
Banking and financial reforms are another cornerstone of the strategy.
The Government proposes to eliminate restrictions on payments in foreign currency between businesses with foreign capital and national suppliers, allow the opening of foreign currency accounts for individuals and legal entities without prior authorization, and complete the removal of limits on bank transfers and cash withdrawals.
It is also proposed to create private and state financial institutions, expand private capital participation in banking activities, establish entities for virtual assets, and formalize private channels for receiving remittances through the role of last-mile payment agents.
In currency matters, the program aims to resize the official exchange market and remittances by incorporating non-state economic actors.
Among the measures are the authorization of private exchange houses, the creation of a real-time digital currency market, the implementation of currency auctions, and the expansion of financial institutions dedicated to currency operations and remittances.
The document also includes the incorporation of cooperatives, state-owned micro, small, and medium enterprises, foreign investment, and other actors into the so-called Segment II of the foreign exchange market, while state enterprises will be able to freely participate in the sale of foreign currency and will do so in a controlled manner when purchasing.
In addition, successive devaluations of the national currency are projected with the stated aim of reducing the differences between the various exchange rates.
Foreign investment will also have greater operating margins in foreign currency.
The proposals authorize businesses with foreign capital to open bank accounts abroad without prior authorization and allow them to freely manage their foreign currency income within an environment defined by the Government as partial dollarization of the economy.
The expansion of currency use will also reach specific sectors such as tourism, where there are plans to create an online corporate bank with international links and services related to virtual assets, as well as commercial activities that will be able to operate partially in pesos and in foreign currency.
Commercial imports by individuals will also be authorized, with tariffs payable in foreign currency.
During his speech before the National Assembly, Marrero Cruz acknowledged that partial dollarization is one of the most sensitive aspects of the economic transformation process and warned that its implementation will generate challenges and contradictions that must be assessed and addressed during the execution of the measures.
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