In a move signaling significant change, Cuban leader Miguel Díaz-Canel unveiled a far-reaching reform of the island's financial landscape. This initiative includes opening the door to both private and foreign financial institutions and allowing businesses engaged in international trade to maintain overseas accounts. This announcement came as Díaz-Canel delivered the closing speech at the Extraordinary Plenum of the Central Committee of the Communist Party of Cuba.
Opening the Financial Sector
Díaz-Canel declared, "We will create space, under strict regulation, for private and foreign financial institutions, new credit mechanisms, productive financing, the development of financial markets, and payment services where state, cooperative, and private actors can participate." This announcement was made to the Central Committee assembled at the Palace of the Revolution.
Enabling Global Transactions
The leader also revealed plans to allow "overseas accounts, foreign currency payments between companies, and auditable international operations for entities involved in imports, exports, or global services." This marks an unprecedented shift in Cuba's financial system, which has been under state control since 1959.
Aiming for Efficiency
The reform aims to dismantle the obstacles that make basic banking operations a daunting task. "The goal is for activities like collecting a pension, receiving remittances from abroad, paying for services, requesting credit, financing a harvest, purchasing equipment, or moving money for production not to be an obstacle course," Díaz-Canel stated.
Modernizing for Growth
Díaz-Canel articulated the need for transformation within the sector, emphasizing, "Cuba needs more agile, digital, and community-focused banks that are useful for those who produce, export, import, invest, or start ventures."
Strengthening, Not Surrendering
The regime framed this opening as a strengthening measure rather than a retreat. "This is not about weakening the role of the state but about expanding and modernizing the country's capacity to finance production, support those generating goods and services, organize monetary flows, and provide better service to our people," the leader asserted.
Addressing a Collapsing System
This announcement comes at a time when Cuba's financial system is facing operational collapse. On June 3, Visa and Mastercard suspended operations in Cuba, just two weeks before the Plenum, due to U.S. Executive Order No. 14404, which extended sanctions and introduced secondary penalties for foreign financial institutions associated with entities like GAESA and FINCIMEX.
By May 2026, over half of the ATMs in Havana were out of service, forcing Cubans, particularly retirees trying to collect pensions, to endure lines of four to six hours at bank branches. The ECLAC projects a 6.5% GDP decline for Cuba in 2026, with an accumulated contraction of 10.3% over 2025-2026.
Urgent Reforms in Crisis
The banking reforms are part of a broader package of over 20 economic and social transformations approved at the Extraordinary Plenum, urgently convened due to the severity of the crisis. The National Assembly has been summoned for an extraordinary session this Thursday to ratify the measures endorsed by the Communist Party.
Raúl Castro, supporting the reforms via videoconference and signing the proposal document, emphasized in a message read during the Plenum that "as important as the approval of these transformations is their proper and timely implementation."
Understanding Cuba's Financial Reforms
What changes are being introduced to Cuba's banking system?
Cuba is opening its banking system to private and foreign institutions, allowing businesses to maintain overseas accounts and engage in international transactions.
Why is Cuba making these banking reforms now?
The reforms are in response to the operational collapse of Cuba's financial system and are part of a broader effort to modernize and strengthen the economy amid ongoing crises.
Who is affected by the new banking policies in Cuba?
The policies impact state, cooperative, and private actors in the financial sector, as well as businesses involved in import, export, and global services.
How have international sanctions influenced Cuba's financial reforms?
International sanctions, particularly those from the U.S., have pressured Cuba to reform its financial system as access to global financial services has been restricted, impacting operations like Visa and Mastercard.