Cuba moves to partially dollarize the economy

[stompix]

Yup, you've read it right, it's dollarize not de-dollarize!

After Argentina and Venezuela we have a new candidate that goes against the whole propaganda of de-dollarization, and who would have guessed that's Cuba!

Cuba moves to ‘partially’ dollarize economy as government struggles to make payments

Cuban Prime Minister Manuel Marrero said the government will embrace a “partial” dollarization of the economy as it struggles to buy food, oil, and pay creditors in a scenario he described as a “war economy.” During a session of the National Assembly on Wednesday, Marrero said the government will start accepting payments in dollars and other foreign currencies at hotels, stores and other venues linked to the island’s tourism industry as a temporary measure.

I find it a bit weird and also funny how every country the moment it realizes it has gone way beyond the point of no return is not trying the BRICS currency whatever that is but always tries to either embrace the USD or create a peg to it.

So, another day, another nail in the coffin for the theory about de-dollarization, another wake-up call to everyone about that thing called reality! If Cuba of all countries has chosen the dollar, who do you expect to embrace anything else?

[WillyAp]

I find it a bit weird and also funny how every country the moment it realizes it has gone way beyond the point of no return is not trying the BRICS currency whatever that is but always tries to either embrace the USD or create a peg to it.

Rather pragmatic than weird IMHO.
BRICS as currency is light-years away and Cuba won't be part of it. Neither will be Venezuela under the current Government.

Obviously I can be wrong, wouldn't be a first either. If chosen for their anti US stance they could be part of it.
 
If Cuba makes peace with the US millions of US citizens will make a trip to the island. 

[goldkingcoiner]

This is very strange. Why would Cuba support the Dollar even though the US has kept Cuba down, especially economically?

[Die_empty]

I find it a bit weird and also funny how every country the moment it realizes it has gone way beyond the point of no return is not trying the BRICS currency whatever that is but always tries to either embrace the USD or create a peg to it.

So, another day, another nail in the coffin for the theory about de-dollarization, another wake-up call to everyone about that thing called reality! If Cuba of all countries has chosen the dollar, who do you expect to embrace anything else?

The news didn't say Cuba is now accepting only the dollars but also other foreign currencies. And I think it was a smart move because they have been losing money due to this embargo placed on the dollar. Before now tourists would have to convert foreign currencies to local currency before engaging in any transaction. With Cuba's lack of infrastructure which leads to constant failure in financial transactions, it is wise to allow payments in foreign currencies. If there is no bank network for a tourist to pay for goods or services, it is the government and businesses that are losing.

De-dollarization is not the process of not accepting the dollars but having a competitive alternative. It will be an economic blunder for any country to stop accepting the dollars in the name of de-dollarization. And for a country like Cuba which is going through a terrible economic condition caused mainly by US and Western sanctions, accepting dollars is a means of survival.

I don't think the concept of de-dollarization is targeted at making the dollar obsolete, but to have another powerful currency that will be used side by side with the dollar. We cannot conclude that Cuba is willingly embracing the dollar until there is an alternative. After all Cuban Prime Minister Manuel Marrero said this "partial dollarization" is a temporal measure to stabilize the economy.

[Ever-young]

I think the present government is confused over what they want, and they think the acceptance of USD will help them defeat economic hardship, whereas the 2004 or 2005 administration thinks otherwise.
 
The dollar was stopped from being used for trade in Cuba due to the belief that it had a negative effect that was hindering the value of the peso (Cuban convertible peso). After they stopped the use of the United States dollar in major business, the value of their local currency saw an increase of up to $1+ per the local currency. 
 
Let's see how this will help them defeat what they call the war economy. They should look for a way to make their currency stronger and more valuable instead of implementing a way to devalue it.

[franky1]

maybe stompix doesnt know this.. but cuba is part of america.. and has been for years..
(many bureaucratics and treaties and such, even if not a "state")
he shouldnt be comparing cuba's economics with that of Argentina and Venezuela
(bureaucratically and economically there is no comparison)

cuba would side with the american way because its considered part of america..
Argentina and Venezuela are not part of "america" so have more sovereignty to escape the american masterplan

in short cuba has more ties to america than it does to say brazil, it doesnt want to go through another century going against america just to follow some other continent leader like brazil

[o48o]

This is very strange. Why would Cuba support the Dollar even though the US has kept Cuba down, especially economically?

Article is pretty self explanatory. And what other choises they would have? I mean it makes sense if they want to embrace tourism, to make it as easy as possible for tourists to buy goods, without fear of hyper inflation. And it definitely beats the system they are using now with their virtual currency (MLC) via prepaid cards. It's not like USD is going to destroy them more then systems they have already tried out.

[Juse14]

It is worth noting that the adoption of USD by certain nations like Argentina, Venezuela, and Cuba does not signify the demise or impracticability of complete de-dollarization. The process of de-dollarization is a long and intricate expedition, it demands both time and a well-developed strategy.

BRICS and other countries are still exploring the possibility of getting rid of the US dollar as a global currency. They want to come up with another system for financing that will be equitable. Certainly many countries might feel safer using the USD in the short term since it is stable and widely accepted globally.

Nevertheless, it is important that we do not overlook the strides made by these nations in fostering nontraditional forms of currency and payment mechanisms. In one such case, BRICS has mulled over adopting a shared currency as well as setting up a financial body, intended to stand at par with the IMF and World Bank, as an alternative choice for countries. Their endeavours signal loud and clear their keen aspiration to fashion a globe which does not bow wholly to any one single currency.

De-dollarization may not happen overnight, but small steps taken by these countries could lead to significant changes in the future.

[WillyAp]

I think the present government is confused over what they want, and they think the acceptance of USD will help them defeat economic hardship, whereas the 2004 or 2005 administration thinks otherwise.

I think they have made up their mind.
In the short run, BRICS won't help, the US is a safer bet. BRICS neither will open their pockets towards Cuba due to the staunch enemyship Cuban leader have acquired. The US negotiating with Venezuela opens a door for Cuba, The Castros are gone, the people are one step away from overthrowing their regime.

One could say the US is a bit more aware that southamerica is coming to them,and the only stopping it is pragmatism. 

From 2022:
https://foreignpolicy.com/2022/05/20/biden-cuba-venezuela-policy-sanctions-summit-americas-oil/

[legendbtc]

This is very strange. Why would Cuba support the Dollar even though the US has kept Cuba down, especially economically?

Cuba is one of the countries that has suffered many heavy sanctions from the US for many years. I was really surprised to hear this information, but this may only be a temporary solution to save the national economy before taking new steps. Or this could also be an agreement between Cuba and the US to reduce sanctions that the US has imposed on Cuba.

Regardless of the reason behind it, we cannot rely on this news alone to confirm that the world's de-dollarization process has stopped. Cuba is not a member of Brics and does not represent the world in saying that it still wants to use and depend on the USD.
The process of de-dollarization is quite slow but that does not mean it is stopping, it is still very early to say that the process has been successful but it cannot be said that it has failed.

[STT]

You can bet any of their citizens for years would have taken dollars, what we're hearing here is a military dictatorship is willing to roll back some of their oppression on their people.

   Im happy for them but it would be better for Cuba overall to realize freedom is a better conduit to prosperity then the barrel of a gun.   The military requires more money, they are willing to take any cash is not the most noble optimistic words Ive heard declared but who knows maybe something actually new could occur.

[WillyAp]

Cuba is one of the countries that has suffered many heavy sanctions from the US for many years

And at the same time had 3 million foreign tourist visiting Cuba.
Sanctions don't do much against their governments.

[Fortify]

Yup, you've read it right, it's dollarize not de-dollarize!

After Argentina and Venezuela we have a new candidate that goes against the whole propaganda of de-dollarization, and who would have guessed that's Cuba!

Cuba moves to ‘partially’ dollarize economy as government struggles to make payments

Cuban Prime Minister Manuel Marrero said the government will embrace a “partial” dollarization of the economy as it struggles to buy food, oil, and pay creditors in a scenario he described as a “war economy.” During a session of the National Assembly on Wednesday, Marrero said the government will start accepting payments in dollars and other foreign currencies at hotels, stores and other venues linked to the island’s tourism industry as a temporary measure.

I find it a bit weird and also funny how every country the moment it realizes it has gone way beyond the point of no return is not trying the BRICS currency whatever that is but always tries to either embrace the USD or create a peg to it.

So, another day, another nail in the coffin for the theory about de-dollarization, another wake-up call to everyone about that thing called reality! If Cuba of all countries has chosen the dollar, who do you expect to embrace anything else?

Whether these countries like it or not, the dollar is relatively stable in an increasingly unstable world. China might prod and poke, or even rock the boat with their ascension in economic terms, but their currency is never going to be trusted to the same degree while they are run by the CCP. The Euro is gaining in popularity but is still not as solid as the dollar and for Cuba, old grudges aside, they re incredibly close geographically so it makes complete sense if they cannot sustain their own local currency. Of course the downside is, if America catches a cold then they will suffer, or if America decides to turn the printing presses back on it could cause problems in other countries that they cannot control.

[Coyster]

In the article it is said that they will accept dollar and also other foreign currencies, but there was no specific mention of these other currencies. I think they want to experiment with something else that could be better for their economy, since they struggle with connectivity and black outs, accepting the dollar and other foreign currencies in cash is a good alternative for tourists, rather than their current system.

So, another day, another nail in the coffin for the theory about de-dollarization, another wake-up call to everyone about that thing called reality! If Cuba of all countries has chosen the dollar, who do you expect to embrace anything else?

The dollar is what it is, it is the world's reserve currency and i do not think that status is going to change in a long time. But there is nothing wrong for other countries to try other alternatives different from the dollar. I don't believe in the propaganda of doom for the U.S dollar or the U.S itself, but if countries believe they can find alternatives to reduce the dominance or dependence solely on the U.S dollar, then that is fine.