HAVANA, Cuba – Alejandro Fonseca, a 23-year-old Cuban, recently experienced the frustration of waiting in long lines at a bank in Havana, only to find that the ATM was out of cash when it was finally his turn. This scenario is becoming increasingly common among Cubans who are facing a shortage of cash in their already complex monetary system.

Experts attribute the cash shortage in Cuba to various factors linked to the country’s severe economic crisis, which is considered one of the worst in decades. According to Cuban economist Omar Everleny Pérez, the government’s expanding fiscal deficit, high inflation rates, and the reluctance of entrepreneurs to return cash to banks are contributing to the scarcity of physical currency.

Entrepreneurs and small business owners in Cuba often hoard Cuban pesos to convert them into foreign currency due to the need to import supplies and pay for goods in foreign markets, creating a cycle that exacerbates the cash shortage. Additionally, the existence of multiple exchange rates in the country further complicates the process of converting Cuban pesos into foreign currencies.

While the Cuban government has introduced measures to promote a “cashless society” and encourage credit card usage for certain transactions, many businesses remain hesitant to accept electronic payments. High inflation rates have also forced Cuban citizens to rely on increasingly larger quantities of physical bills to purchase goods, as market inflation significantly surpasses official figures.

The complex monetary system in Cuba, which includes multiple circulating currencies and fluctuating exchange rates, has significantly impacted the daily lives of citizens trying to navigate a challenging economic environment. Despite official efforts to address inflation and promote digital transactions, Cubans continue to face obstacles in accessing cash for essential transactions like buying food and other necessities.

The shortage of physical currency not only highlights the economic struggles faced by Cubans on a daily basis but also underscores the broader challenges posed by a monetary system that is in flux and constantly evolving. As the country grapples with a range of financial issues, individuals like Fonseca are left to navigate a complex and unstable economic landscape that presents numerous hurdles to everyday financial transactions.