April 11, 2021

Cubans in the US they sent 30,000 million dollars to the island in eleven years

Cubans in the US they sent 30,000 million dollars to the island in eleven years

The sending of remittances in cash from the United States to Cuba between 2008 and 2018 totaled 30,000 million dollars, which makes this financial asset the "lifeline for Cubans," according to a report by the Havana Consulting Group (THCG), based in Miami

Therefore, the "best weapon" available to the Caribbean island to "counteract" the deep crisis that shakes Venezuela is their exile, which today "financially and emotionally supports the Cuban family," said in an article Emilio Morales, president and general manager of the aforementioned firm, which helps to understand the Cuban market and its consumers.

Combining the two types of remittances, in cash and merchandise, the Cuban population has received from its diaspora a total of 57,269 million dollars in the last 11 years, with an average of 5,200 million annually.

Thus, remittances are the main financial asset of the Cuban economy, not only in terms of volume, for sectors such as tourism, mining, sugar or tobacco, but also represent 50.8% of the Cuban population's income.

In fact, the total income of remittances has more weight in the economy of the island than the "joint commercial exchange of Cuba with China and Venezuela," said Morales.

This economic dependence on remittances creates a "level of vulnerability" that the Cuban government "can not control".

And what is worse, the "escalation of US sanctions" Cuba in the first quarter of the year suggests that in the medium term remittances "could suffer a sharp slowdown".

This could further aggravate the current crisis in the Cuban economy, where the "possible intensification of the deterioration of relations between Cuba and the United States in the coming months" could have a fatal weight, with "more sanctions against the Cuban Government" on the part of the Administration of Donald Trump.

"This would be catastrophic for the Cuban economy" and would act as a "guillotine in the neck of the Cuban government," predicted Morales.

This situation would be further aggravated with the entry into force of Title III of the Helms-Burton law confirmed on Wednesday.

Title III allows claiming in US courts properties nationalized by the Cuban regime and to sue for damages to foreign companies that have invested in commercial property expropriated on the island.


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