“This is a measure meant to protect the Cuban banking and financial system, which applies only to U.S. currency in cash, not existing accounts in this currency. Deposits of U.S. dollars in accounts held by individuals and legal entities are not affected by this measure in any way,” the Central Bank announcement states.

According to the press release issued, this is “a necessary decision, given that, for more than a year now, the Cuban banking system’s ability to deposit U.S. dollar bills, collected within national territory, in international banks has been restricted…

“The scenario is further aggravated by the increase in U.S. currency in cash arriving in the country as a result of U.S. government prohibitions on the regular, institutional flow of remittances.”

The announcement added, “The duration of this measure will depend on elimination of restrictions that prevent the normal functioning of export procedures for U.S. currency.”

Central Bank Vice President, Yamilé Berra Cires, pointed out that since 2005 a total of 35 foreign banks have terminated operations with Cuba, 12 of which had been heavily fined by the U.S. government, and since 2017, 106 banks have canceled messaging keys, which make communication possible between international financial institutions and their counterparts in Cuba. She explained that, in 2020 alone, 95 foreign financial institutions took 190-plus actions against Cuban banks, under pressure from U.S. policies.

(Taken from Granma)

Banco Metropolitano. Photo: Abel Padrón Padilla / Cubadebate

Banco Metropolitano reported today on the offer of a service to open current accounts in freely convertible currency (MLC) for non-state forms of management.

Through a press release, the institution explained about the implementation of the necessary mechanisms to guarantee the process of opening current accounts in MLC for Cuban natural and legal persons who carry out foreign trade activity.

This service will be offered in correspondence with Resolution No. 112/2020 of the Central Bank of Cuba, and to date, a total of 187 accounts have been enabled.

For this opening, the identity document is required, in the first instance, and an official document that authorizes self-employment or other form of non-state management, issued by the competent authority or certified copy of the document that accredits the constitution. of the legal person, as appropriate.

Similarly, registration in the Taxpayers Registry is required, in accordance with the provisions of the special legislation in force, and an initial deposit of no less than the equivalent of one hundred US dollars, only for natural persons.

Non-state management forms that have current accounts at Banco Metropolitano should go to the branch , where they have their accounts open, and proceed to draw up the opening application form.

Current accounts in freely convertible currency become operational when non-state management forms present to the bank the contract signed with the entity authorized to carry out foreign trade activities.

In order to clarify doubts and concerns, the Department of Institutional Communication and Marketing of Banco Metropolitano SA, has enabled the email: tcp@banmet.cu.

(With information from ACN)

This reality contrasts with the history of this area, with the greatest concentration of the global population, which for many years was dependent on financial institutions dominated by the West and often neglectful of its principal needs.

In this context, the Asian Infrastructure Investment Bank (AIIB) emerged, with the aim of creating a solid financial system and articulating the flow of investment for the development of infrastructure in the continent.

But this new body, described by experts as the multilateral lending institution of the 21st century, also aims to rescue those areas of the region somewhat abandoned by both the World Bank and the Asian Investment Bank (AIB), as well as encourage trade and economic cooperation with other countries of Europe and Africa.

Over 400 days since it began operations, this organization, which emerged from a Chinese initiative, already has a total of 57 members and over 1.73 billion dollars approved for nine infrastructure plans in different nations of the region.

The establishment of the bank, which is currently based in Beijing, is also part of the Asian giant’s plans to recreate the ancient Silk Road and achieve greater interconnections between Asia and Europe.

The AIIB’s current capital amounts to 100 billion dollars, of which China, as the main promoter, has contributed half.

In response to claims that this enormous contribution would give Beijing almost absolute control over the organization, Chairman Lou Jiwei stated that the 50% input represents support for the new project and the participation of the Asian giant, although extensive, will gradually be reduced as new countries join the initiative.

India, Russia, Germany, and South Korea stand out as the other major shareholders in the bank, founded on June 29, 2015, and inaugurated last year.

APPROVED PROJECTS

While the AIIB’s greatest ambition is to promote Asia’s social and economic development through projects that connect people, services, and markets, it must first work to reconfigure the current outlook for certain countries of the region.

As such, among its most immediate challenges is the financing of works to modernize highways, railroads and ports, improve access to electricity, expand telecommunications services, promote urban planning and provide sanitation and potable water services – basic issues to dramatically increase connectivity between regions.

Currently, as well as monitoring financing of the “Silk Road Economic Belt and the 21st Century Maritime Silk Road”, the AIIB is participating in nine investment projects, such as the construction of a gas pipeline in Azerbaijan and the building of a commercial port terminal and new railroad system in Oman.

The bank will also provide 20 million dollars for the development, construction, and operation of the largest independent combined-cycle gas turbine power plant in Myanmar.

A loan of 216.5 million dollars has been approved to improve access to urban infrastructure and services in poor neighborhoods of Indonesia.

Meanwhile in Pakistan, Bangladesh, and Tajikistan, the bank will support the M-4 National Highway project, the expansion of the energy distribution system, and a plan to improve border highways, respectively.

According to AIIB directors, the completion of these works in strategic sectors will allow the institution to work toward more ambitious goals, such as the advance of green infrastructure to ensure the countries involved meet their development objectives, as well as those concerning care for the environment.

A NEW FINANCIAL ORDER?

According to an editorial published in The New York Times, “Countries are finding they must increasingly operate in China’s orbit.”

This probably explains why there are 20 are nations from other continents, including Germany, the United Kingdom, France, Italy and Spain, among the 57 AIIB members.

For these members of the international community, the brand-new bank offers financial advantages and for this reason they have decided to join it.

The emergence of this institution is also part of the constant struggle between the United States and China, the world’s first and second powers, respectively, to expand their influence on the global economy.

Meanwhile, it is worth noting that Beijing, despite not experiencing its best times, has decided to promote an initiative such as the AIIB with the willingness, at least, to attend to the needs of a region such as the Asia-Pacific.

Faced with the dominant and hegemonic structure of the World Bank and the International Monetary Fund, heirs to the Bretton Woods agreements following WWII, the AIIB offers an alternative to nations of the South, a novelty in the context of international financial power.

(Granma)