Havana/The announcement by the Central Bank of Cuba (BCC) about the opening of a banking channel so that private MSMEs can buy foreign currency adds another layer to the already convoluted exchange market. The information was disseminated by Banco Metropolitano on its social networks and is presented as part of the new “ordering.” Simply put: the State says that, from now on, some private businesses will be able to buy dollars legally through banks, but under very strict rules.
According to what was explainedpurchases will be made based on the new floating rate, which is today 413 pesos per dollar. Only one purchase per month will be allowed and the businessman will not be able to decide the amount, because the bank will calculate it by taking the average of what he entered into his tax account in the last three months, using only half of that money and converting it according to the floating exchange rate that is in force at that time.
In practice, this means that if an MSME has had low or irregular income, it will be able to buy very few dollars, even if it urgently needs them to import raw materials, pay for services or fulfill contracts. And if the business is just starting up and still has no revenue history, you could simply be left out of the game.
The BCC also made it clear that the entire process will be “banked.” The Cuban pesos will necessarily come out of the fiscal account and the purchased currencies will only be deposited in a foreign currency account of the economic actor himself. There will be no cash, no informal transfers, and no room for maneuver. Before approving the operation, the bank will review the identity of the client, the accounts and the origin of the money, as part of the controls that today weigh on any economic activity on the Island.
In recent years, several “solutions” have been presented for access to foreign currency for the private sector, almost all of them with big headlines and very discreet results.
Applications must be made online, through the Metropolitano Online service. On paper, it sounds modern and organized. In real life, many businessmen remember that state banking platforms often fail, collapse or become inaccessible just when they are needed most, especially outside of Havana.
Beyond the technical language, the question many business owners ask is quite direct: is this enough to solve anything? The answer, at least for now, appears to be no. The main problem continues to be the shortage of foreign currency. The State is not offering new dollars, it is only telling how and to whom to sell a part of the few it has.
Furthermore, the floating rate, set by the Central Bank itself, although it is adjusted periodically, is still far from reflecting the real price of the dollar on the street (460 pesos for one dollar this Saturday), where most of the operations move. As long as this difference exists, many entrepreneurs will continue to find it less cumbersome and more efficient to go to the informal market than to undergo a long banking process to buy a limited amount of foreign currency.
It is not the first time that the Government announces mechanisms of this type. In recent years, several “solutions” have been presented for the private sector’s access to foreign currency, almost all of them with big headlines and very discreet results.
For some MSMEs with stable income, a good relationship with the bank and patience in dealing with bureaucracy, this route can serve as a complement. For the majority, however, the underlying problem remains intact: there are not enough dollars in the system and the State distributes them in dribs and drabs.
