The Cuban government has introduced foreign currency tariffs on non-state sector imports as part of a new economic reform package, announced Prime Minister Manuel Marrero Cruz this Wednesday. During the third regular session of the National Assembly in its tenth legislature, Marrero Cruz outlined the regime's latest attempt to stay afloat economically.
In addition to requiring payments in foreign currencies—while transactions within Cuba are typically conducted in the national currency—the former Minister of Tourism also revealed a gradual and selective implementation of foreign currency charges for port services. Furthermore, he mentioned that certain sectors and activities, such as tourism, will accept foreign currency cash despite a recent push for banking reforms that have yet to show positive results.
These measures come just hours after President Miguel Díaz-Canel announced a "restructuring" plan for both private and state sectors, citing the "irresponsible manner" in which some institutions operate. Díaz-Canel emphasized that this is not a witch hunt against any specific form of management or ownership. However, the official narrative has been critical of Micro, Small, and Medium Enterprises (MIPYMEs), particularly those that import finished goods or fail to comply with price caps.
Recently, the regime instituted price caps on six high-demand basic products through a resolution published in the Official Gazette of Cuba, imposing fines of up to 8,000 pesos for non-compliance. To illustrate, the Ministry of Finance and Prices issued 4,332 fines to private businesses for price violations on July 12 and 13, totaling over 13 million pesos, according to the official newspaper Granma.
Authorities and inspectors conducted 11,891 checks to ensure adherence to retail prices. Vladimir Regueiro Ale, the head of the sector, reported that 41.7% of inspections revealed violations, with a total of 4,954 cases, although 4,332 fines were issued, amounting to over 13 million pesos.
In addition to the fines, there were 354 forced sales—187 in Havana—53 temporary suspensions of business licenses, and 21 confiscations, mostly targeting those operating illegally, according to the same media outlet.
Understanding Cuba's New Economic Measures
In response to recent economic reforms and measures imposed by the Cuban government, many questions have arisen regarding the implications and enforcement of these changes. Below are some frequently asked questions and their answers to help clarify the situation.
Why is the Cuban government imposing foreign currency tariffs on private sector imports?
The government aims to boost economic stability by requiring payments in foreign currencies, which they believe will help manage the country's financial resources more effectively.
How will these new tariffs affect private businesses in Cuba?
Private businesses may face increased operational costs due to the requirement to pay tariffs in foreign currency. This could lead to higher prices for consumers and potential financial strain on businesses that rely heavily on imports.
What sectors are most impacted by the acceptance of foreign currency cash?
The tourism sector is notably affected, as it will now accept foreign currency cash despite ongoing banking reforms. This change aims to attract more foreign currency into the economy.