Long lines in front of banks and ATMs as Cubans face another hurdle to their difficult daily routine

(27 Apr 2024)
RESTRICTION SUMMARY:
ASSOCIATED PRESS
Havana, Cuba - 19 April 2024
1. People approach ATM
2. ATM screen reading (Spanish) "Under maintenance"
3. People queue, trying to get money from ATM
4. Ramiro Pupo takes bicycle and leaves ATM
5. SOUNDBITE (Spanish) Ramiro Pupo, builder:
“I have been trying to withdraw money from the ATMs for three days and only managed it today.”
6. Various of people waiting to get money from ATM
ASSOCIATED PRESS
Cali, Colombia - 19 April 2024
++VIDEO CALL INTERVIEW++
7. SOUNDBITE (Spanish) Pavel Vidal, Cuban economy expert, professor at the Javeriana University in Colombia:
“The last official data shows that 70% of the money is circulation cash and only 30% is in the banks.”
ASSOCIATED PRESS
Havana, Cuba - 19 April 2024
8. Various of woman buying Cuban pesos at small private outlet
STORYLINE:
Cubans have to grapple with yet another hurdle while navigating an already complicated monetary system in the island - a shortage of cash.
Already grappling with persistent blackouts and food scarcities, they now face the daily hurdle of acquiring Cuban pesos in cash.
Legally, Cuban pesos (CUP) are mandated for payments, with the 2023 introduction of the MLC, a virtual currency tied to the U.S. dollar, aimed at easing transactions.
Exchange rates fluctuate, with a dollar officially valued at 24 Cuban pesos for companies, but fetching 120 pesos for individuals from the government.
Unofficially, on the street, the exchange rate skyrockets to 350 pesos, exacerbating the financial strain.
Several factors are believed to contribute to the cash shortage, including a widening fiscal deficit, limited high-denomination banknotes, inflation, and money hoarding outside of the banking system.
Official figures cite inflation at 31% in 2023, but citizens contend with triple-digit price hikes in the informal market while state salaries remain stagnant.
Economists acknowledge the issue's complexity, suggesting that structural reforms beyond recent initiatives like the MLC and private sector legalization are necessary, though challenging within the current governmental framework.
AP Video shot by Ariel Fernández and Milexsy Durán
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