Havana, Cuba – Alejandro Fonseca found himself frustrated as he waited in line for hours outside a bank in Havana, only to have the ATM run out of cash right before his turn. This shortage of cash is becoming a common struggle for many Cubans, adding another layer of complexity to the already challenging monetary system on the island.

Long lines outside banks and ATMs in Havana are a daily occurrence as people line up to withdraw money for basic necessities like food. The shortage of cash is attributed to various factors linked to Cuba’s deep economic crisis, including the government’s increasing fiscal deficit, high inflation rates, and the hoarding of cash by business owners who rely on foreign currency transactions.

Omar Everleny Pérez, a Cuban economist, highlighted the shift in cash distribution over the years, with more money now held by individuals rather than in banks. This has created challenges for entrepreneurs and small business owners who need Cuban pesos to convert into foreign currency for importing goods or paying for supplies, contributing to the shortage of physical bills in circulation.

In an attempt to address the cash shortage, the Cuban government announced measures in 2023 aimed at promoting a “cashless society” by mandating the use of credit cards for certain transactions. However, many businesses are hesitant to accept credit cards, exacerbating the difficulties faced by everyday Cubans in accessing cash for essential purchases.

The complexity of Cuba’s monetary system, with multiple circulating currencies and fluctuating exchange rates, further complicates the situation for residents. The discrepancy between official inflation figures and market inflation rates adds to the challenges faced by Cubans, as the cost of basic goods continues to rise while salaries remain relatively low.

Living in an economy with multiple currencies, exchange rates, and high inflation rates has created a difficult environment for many Cubans, according to Pavel Vidal, a Cuba expert and professor. As the shortage of cash persists and challenges in accessing essential goods continue, the impact of Cuba’s economic crisis is keenly felt by individuals across the country.

Overall, the shortage of cash in Cuba reflects a broader economic struggle faced by many residents, highlighting the complexities and challenges of navigating the country’s monetary system in the midst of economic uncertainty.