Cuba banking reforms unlikely to benefit citizens, economist says

Economist Elías Amor has expressed skepticism regarding recent banking reforms announced by the Central Bank of Cuba. While the new measures aim to increase bank autonomy, introduce new credit products, and facilitate digital payments and remittances, Amor suggests these changes may offer little relief to citizens facing severe economic hardship and a humanitarian crisis.

Amor noted that the reforms do not represent a move toward full dollarization. He highlighted recent resolutions from the Central Bank and the Ministry of Economy that implement a 'partial dollarization' through mechanisms like the 80/20 scheme, where exporters must convert a portion of their foreign earnings into Cuban pesos. He argued that comprehensive dollarization remains structurally impossible as major state sectors, including healthcare, education, and public administration, will continue to operate using the local currency.

Furthermore, the effectiveness of these reforms may be hindered by a deep-seated lack of trust in state banking institutions among the Cuban population, compounded by ongoing issues such as cash shortages and difficulties in accessing wages or transfers.