Foreign investors blindsided as Havana quietly restricts dollar access
The Cuban government has sent shockwaves through the international business community after informing foreign companies they will no longer be able to freely access the funds in their Cuban bank accounts. The move, communicated in closed-door meetings with corporate representatives, effectively freezes millions of dollars and mandates that funds be used strictly for operations within the island.
The abrupt restriction, still awaiting an official announcement, has already triggered alarm among investors, many of whom have lodged formal complaints with their home governments. As Havana scrambles to address a severe economic crisis, experts warn this latest policy could scare off future investment when Cuba needs it most.
Foreign confidence shattered by secretive currency controls
The affected companies, particularly Spanish hotel chains like Meliá, Iberostar, and Barcelo, represent a vital part of Cuba’s tourism infrastructure, one of its few hard-currency-generating sectors. Yet, instead of protection or incentives, these firms are now being told their profits cannot leave the country.
To make matters worse, Cuban officials are reportedly encouraging the creation of “new” foreign currency accounts, accounts into which only fresh funds can be deposited, further limiting corporate access to existing capital. This mirrors tactics used domestically when citizens were required to transfer funds into government-issued “Clasica” cards that excluded previously earned balances.
“This is nothing short of financial coercion,” one Havana-based business executive said on condition of anonymity. “They’re asking us to invest more right after taking what we already earned.”
A move that could backfire on a failing economy
Cuba’s economic struggles have been building for years. With over 80% of food and fuel imported, the state faces ongoing liquidity issues exacerbated by parallel currency markets, limited local production, and mounting external debt.
While the government justifies this new policy as a stopgap to preserve essential imports, critics argue it reveals desperation, not strategy. In the long term, restricting repatriation of profits may cripple foreign partnerships, already hindered by decades of bureaucracy and lack of legal guarantees.
As Cuba plummets in global investment rankings, recently listed as the least economically free country in the Americas by The Heritage Foundation, the concern is no longer just about access to cash. It's about trust.
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