Cuban Banks “Hijack” Family Remittances
HAVANA TIMES – Jose Reyes Albuerne is 71 years old and lives in Las Tunas. A few days ago, he told El Toque about his frustration with not being able to shop at dollar stores, even though he receives foreign currency in the remittances from his daughter.
“I will never agree that they send me euros and they load them onto an MLC card that is now useless,” he said.
According to what he told elTOQUE, he doesn’t receive “a single cent from the government” and, therefore, he demands that his daughter’s sacrifice be respected so he can live a little better.
Reyes Albuerne is not the only retiree who explained his frustration about not being able to receive the money sent by his relatives.
“I’m retired with 1,528 pesos a month (which is under US $5). They sent me a transfer in euros from Spain, and the Metropolitan Bank can’t make it available because they don’t have the money. What can I do to get the bank to give me my money?” asked a user who preferred to remain anonymous.
The lack of liquidity in Cuban banks has made it so many customers can’t access foreign currency in cash from their accounts. While this is not a new issue, the inability to access money has increased public frustration, especially with the growing number of dollar stores that accept cash dollars but exclude the MLC.
Where is my money?
A bank worker explained to El Toque that the inability to receive euros directly in Cuba – even if the family deposits that currency from abroad – is due to the monetary and banking regulations established by the Cuban government.
In the current system, foreign currency transactions are strictly controlled; Cubans must receive remittances in MLC or Cuban pesos, and the money sent from Spain, for example, is automatically converted into the corresponding currency based on the sending method and the type of account held by the recipient.
He also explained that it is possible to send money to a “booklet account” in foreign currency and then request cash, “but right now the availability in the banks is poor. It depends on how much has been reserved and how many account holders are requesting it,” he said.
The bank worker added that, in theory, money could be sent to Bandec prepaid cards or Fincimex Classic cards, which are denominated in USD and not MLC, “but withdrawing cash from those is also a problem.”
El Toque readers have commented that they’ve had to wait weeks for their relatives’ remittances to “show up in the account.” While European banks like BBVA, Santander, or Caixa claim the maximum transfer time is 7 business days, in Cuba the process is extended considerably.
“They sent me a transfer in euros from Spain, but the bank holds the money for months, claiming a lack of liquidity. It’s like hijacking the little we receive from our relatives while they have funds to buy cars and build hotels. What can we do as victims in this situation?” said a user in one of the complaints sent to the editorial office.
The same dissatisfaction is felt by Spanish citizens living in Cuba who receive assistance from the European government.
“In recent years, the aid sent by Spain to its citizens in Cuba has been paid in MLC when Spain sends euros. This year has already been critical,” one beneficiary reports.
According to the Spanish Consulate’s website in Cuba, most of the “extraordinary aid to nationals living abroad who are in need through different programs” is delivered in pesos.
In Spain, euros are deposited, but they receive Cuban pesos in their accounts based on the official Cuban exchange rate. The biggest dissatisfaction among beneficiaries receiving aid in this currency is the loss of value due to the exchange rate.
“The euro on the informal market is over 300 pesos, while the bank gives or deposits between 125 and 135 pesos, depending on the rate of the day. We lose a lot of money,” said a Cuban-Spanish person who receives a 100-euro aid.
According to what he explained, along with other Cubans in the same situation, or who receive aid on MLC cards, they have complained to the consulate asking for the foreign currency in cash, but their requests have not been answered.
José Reyes Albuerne from Las Tunas also hasn’t found a definitive solution. “It doesn’t help me for it to be in pesos because I can’t take it out, and then I have to use it to buy foreign currency. I have to do something because everything is a disaster in this country.”
First published in Spanish by El Toque and translated and posted in English by Havana Times.