With Western Union Offices Closed, Cubans Find Informal Ways To Get Cash To Relatives On the Island
For years Cuban Americans were able to send money to relatives on the island via Western Union. Those cash transfers had to be coordinated in Cuba by a government agency called Fincimex.
On Monday, the Western Union offices in Cuba were closed.
It was all part of a Trump administration crackdown on Cuban businesses controlled by the Cuban military. So, how are Cuban Americans going to get money to their loved ones on the island?
A total of $3.5 billion in remittances reach the island annually, many Cubans rely on that cash to pay for food and services, as well as, to finance local private business.
Jorge Duany, Director of the Cuban Research Institute at FIU, says, “Given the fact that tourism has practically collapsed, this as a result of the pandemic, the remittances have become the most important.”
Four-hundred Western Union offices are shuttered because of a Trump administration sanction prohibiting a Cuban government agency from handling financial transactions.
The policies aimed at chocking off any American dollars from support of Cuban businesses, such as restaurants and hotels that are controlled or owned by the Cuban military.
“It is going to be very tough for the Cuban people to survive,” said Duany.
With $3.5 billion on the line, there is another way to get cash to Cuba. ‘Mulas’ or mules are people carrying cash to the island through flights to Cuba.
That has been a long-time tradition.
‘It is estimated that about half of all money that goes to Cuba goes through these informal channels. It is likely this form of transfer will increase in the immediate future,” added Duany.
And there are smaller companies that offer the service so far not impacted by restrictions. There is also bitcoin, bt would it work with tech-savvy people on the island?
“I don’t know how many people know about it. How many have the technological resources to give and receive bitcoin? It could be one of the new ways to spend money now that Western Union is going to leave the market.”
But is there change on the horizon? In January, a new administration in the White House will be in charge.
Biden and Vice President-elect Kamala Harris have already expressed interest in relaxing restrictions on remittances and travel by Cuban Americans.
Cuba experts have CBS4 that unraveling the Trump-Cuba policies, especially those that deal with tourism dollars flowing to the Cuban military might be difficult.
It was all part of a Trump administration crackdown on Cuban businesses controlled by the Cuban military. So, how are Cuban Americans going to get money to their loved ones on the island?
A total of $3.5 billion in remittances reach the island annually, many Cubans rely on that cash to pay for food and services, as well as, to finance local private business.
Jorge Duany, Director of the Cuban Research Institute at FIU, says, “Given the fact that tourism has practically collapsed, this as a result of the pandemic, the remittances have become the most important.”
Four-hundred Western Union offices are shuttered because of a Trump administration sanction prohibiting a Cuban government agency from handling financial transactions.
The policies aimed at chocking off any American dollars from support of Cuban businesses, such as restaurants and hotels that are controlled or owned by the Cuban military.
“It is going to be very tough for the Cuban people to survive,” said Duany.
With $3.5 billion on the line, there is another way to get cash to Cuba. ‘Mulas’ or mules are people carrying cash to the island through flights to Cuba.
That has been a long-time tradition.
‘It is estimated that about half of all money that goes to Cuba goes through these informal channels. It is likely this form of transfer will increase in the immediate future,” added Duany.
And there are smaller companies that offer the service so far not impacted by restrictions. There is also bitcoin, bt would it work with tech-savvy people on the island?
“I don’t know how many people know about it. How many have the technological resources to give and receive bitcoin? It could be one of the new ways to spend money now that Western Union is going to leave the market.”
But is there change on the horizon? In January, a new administration in the White House will be in charge.
Biden and Vice President-elect Kamala Harris have already expressed interest in relaxing restrictions on remittances and travel by Cuban Americans.
Cuba experts have CBS4 that unraveling the Trump-Cuba policies, especially those that deal with tourism dollars flowing to the Cuban military might be difficult.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.