Cuba officially legalizes transactions in USD and other foreign currencies.

Cuba will begin allowing transactions in US dollars and other foreign currencies in an effort to stabilize its economy, which is under pressure from US sanctions.

A local resident holds US dollars and Cuban pesos in Havana, August 2025 - Photo: REUTERS

The Cuban Official Gazette announced on December 11th that the new law aims to boost the flow of foreign currency, as well as increase the production of goods and services domestically, until the economic situation allows the Cuban peso to once again be the sole legal tender in the country.

According to Cuba's Cubadebate online portal, the Ministry of Economy will decide which transactions can be conducted in foreign currency, prioritizing exports, export-related industries, and goods that can replace imports.

Sharing on social media platform X, Cuban Prime Minister Manuel Marrero stated that these changes “will help stabilize the macroeconomy and provide greater autonomy for the business sector.”

According to Bloomberg, much of the Cuban economy previously conducted transactions in US dollars. However, the government only regulated a select number of shops where transactions in US dollars were considered legal.

Amidst a challenging economic climate, authorities have decided to legalize foreign currency transactions more broadly.

In the long term, Emilio Morales, chairman of Havana Consulting Group, believes that dollarization is unlikely to significantly improve the economy without more far-reaching reforms.

Analysts believe this is one of the Cuban government's efforts to attract more US dollars, amid the risk that this foreign currency will become more difficult to control on the black market.

Furthermore, the new move comes as Cuba faces widespread power outages that have lasted for years, as well as shortages of food and medicine.

Furthermore, the US seizure of an oil tanker off the coast of Venezuela on December 10th also raised concerns for the Cuban government, as the country remains dependent on imported fuel to keep its power grid from collapsing.

KHANH QUYNH

Source: https://tuoitre.vn/cuba-chinh-thuc-hop-phap-hoa-giao-dich-bang-usd-va-ngoai-te-20251212083710669.htm