Many Cubans continue to demand that the Central Bank of Cuba (BCC) return the dollars of workers who had accounts in foreign currency when the so-called “Ordering Task” was implemented.
At that time, the banking authority on the island established Certificates of Deposit so that clients who had accounts in convertible pesos (CUC) could convert them to freely convertible currency (MLC).
However, the account holders would not be able to access the money until the country had sufficient liquidity to back it up.
In one section In its FAQ on the acceptance of bank deposits in cash dollars, the BCC stated that “the conditions regarding Certificates of Deposit in foreign currency remain the same.” Therefore, they only authorize their total or partial withdrawal in CUP at the rate of 1×120.
Since then, many users have commented on each BCC publication, reminding them that the institution has a duty to honour its commitment to its clients.
The outstanding debt of the Central Bank of Cuba with some clients: the Certificates of Deposit in MLC
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Angel Rojas wrote: “They have just fulfilled their obligation to honor the accounts through certificates of deposit that many clients of old CUC accounts hold. While waiting for the bank to have the necessary foreign currency, at least give the possibility of converting them into MLC accounts. This has been going on for more than 4 years. How long do we have to wait?”
Along the same lines, José Antonio Solana Fernández demanded: “If there is no availability of foreign currency in liquid money, instead of certificates of deposit, compensate those who were scammed with MLC cards or with the latest ones denominated in USD, loaded with the equivalent of the amounts of the original accounts seized. This is about honor and respect for the people.”
In essence, many Cuban collaborators are demanding that they be given back “the salary they earned during years of missions abroad, separated from their families, in very difficult conditions, some even risking their lives.”
They consider that the Central Bank of Cuba disrespects and violates the signed contracts, since they deprived them of their MLC income without prior notice and “as consolation they gave them a Certificate of Deposit until the country had availability of the same.”
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If I put $500 in a CD for 5 years
Understanding Certificates of Deposit: A Low-Risk Savings Option
Certificates of Deposit (CDs) are a popular low-risk savings option offered by banks and financial institutions. In this article, we will explore the concept of CDs, their benefits, and the current situation in Cuba regarding Certificates of Deposit.
What are Certificates of Deposit?
Certificates of Deposit are time deposits offered by banks with a fixed interest rate and maturity date. They are a low-risk investment option that provides a higher interest rate compared to traditional savings accounts. CDs are insured by the Federal Deposit Insurance Corporation (FDIC), which means that deposits up to $250,000 are protected in case of bank failure [[1]][[2]].
Benefits of Certificates of Deposit
CDs offer several benefits, including:
Higher interest rates compared to traditional savings accounts
Low risk of investment
FDIC insurance protection
Flexibility in terms of maturity periods
* Guaranteed yields
Certificates of Deposit in Cuba
In Cuba, the Central Bank of Cuba (BCC) introduced Certificates of Deposit as part of the “Ordering Task” to convert accounts in convertible pesos (CUC) to freely convertible currency (MLC). However, account holders would not be able to access their money until the country had sufficient liquidity to back it up [[3]].
Many Cubans are demanding that the BCC return their dollars, which were converted into Certificates of Deposit in foreign currency. The BCC has stated that the conditions regarding Certificates of Deposit in foreign currency remain the same, and account holders can only withdraw their money in CUP at a rate of 1×120.
Outstanding Debt of the Central Bank of Cuba
Many users have commented on BCC publications, reminding the institution of its commitment to its clients. They are demanding that the BCC honors its obligation to return their money, which has been delayed for over four years. Some users are suggesting alternative solutions, such as compensating account holders with MLC cards or USD-denominated cards loaded with the equivalent of the original accounts seized.
Certificates of Deposit are a low-risk savings option that provides a higher interest rate compared to traditional savings accounts. While they are a popular investment option in many countries, the situation in Cuba regarding Certificates of Deposit in foreign currency is complex and has led to frustration among account holders. The Central Bank of Cuba needs to address the concerns of its clients and find a solution to this outstanding debt.
References:
List of central banks
The Central Bank of Cuba: Understanding its Functions and Responsibilities
The Central Bank of Cuba, also known as the Banco Central de Cuba (BCC), is the central bank of Cuba responsible for managing the country’s monetary policy, regulating the financial system, and maintaining the stability of the Cuban peso (CUP) centrale_Cubana”>[2[2]. However, recent developments have led to concerns among Cuban citizens regarding the bank’s commitment to honoring its obligations to clients who had accounts in foreign currency.
The Certificates of Deposit in MLC: An Unresolved Issue
When the so-called “Ordering Task” was implemented, the BCC established Certificates of Deposit so that clients who had accounts in convertible pesos (CUC) could convert them to freely convertible currency (MLC) [3[3]. However, the account holders would not be able to access the money until the country had sufficient liquidity to back it up. Many users have been demanding that the BCC return the dollars of workers who had accounts in foreign currency, and the bank has only authorized the withdrawal of these certificates in CUP at a rate of 1×120.
Public Concerns and Demands
Cuban citizens are increasingly frustrated with the BCC’s stance on this issue. Many have taken to social media to express their dissatisfaction, reminding the bank of its duty to honor its commitment to clients. Angel Rojas, a Cuban citizen, has been vocal about the need for the BCC to give clients the possibility of converting their certificates of deposit into MLC accounts, stating that “This has been going on for more than 4 years. How long do we have to wait?” José Antonio Solana Fernández has also demanded that the BCC compensate those who were affected by the implementation of the “Ordering Task,” suggesting that the bank issue MLC cards or USD-denominated cards loaded with the equivalent of the original accounts seized.
Conclusion
The Central Bank of Cuba has a critical role to play in maintaining the stability of the Cuban economy. However, its handling of the certificates of deposit in MLC has raised concerns among Cuban citizens. The bank must address these concerns and take concrete steps to honor its commitment to clients who had accounts in foreign currency. By doing so, the BCC can restore trust and confidence in the Cuban financial system.
