In Cuba, remittance couriers like Javier face a sharp drop in work due to police raids on currency networks. The government aims to control incoming dollar flows, as remittances become the main foreign currency source after the pandemic. This crackdown has bred fear and economic hardship for those relying on these services.
Javier, a remittance courier in Havana, expected December to be his best month since starting the job. Colleagues had described holiday surges in transfers, amplified this year by fears of the chikungunya epidemic and U.S. immigration policies. Yet, from November 22, his routine shifted. That day, while on deliveries, state media announced the arrest of 13 members of a foreign currency trafficking network, akin to his company. He earns 0.5% of distributed sums: 500 pesos for 100,000 pesos (about $222 USD), typically taking home 1,500 to 2,000 pesos daily, more during holidays.
Now, he works only one or two days a week, fearing raids. “I hope things improve by year-end, because truthfully, I’m not even earning enough for daily expenses. The police spend all their time hunting remittance couriers and currency traders. It seems the government has set out to regain control of all money entering Cuba, like when Western Union operated here,” Javier said.
Cuba’s economy once relied on professional services exports, tourism, and remittances for 80% to 90% of foreign currency. The pandemic gutted tourism (now a fifth of 2018 revenues) and medical cooperation, while Venezuelan oil averages 50,000 barrels daily. Remittances, previously handled by Fincimex (a GAESA subsidiary), now bypass official channels due to MLC card devaluation, trading at half the dollar’s value.
A University of Camagüey economics professor, advising a private wholesaler, detailed MSME hurdles: “The State has no legal mechanism for MSMEs to exchange peso earnings for dollars or transfer funds abroad. A fundamental step would be an official exchange market with a realistic, floating rate.” Instead, the government targets the informal market, including the El Toque platform. The dismantled network, led by Cuban-American Humberto Mora Caballero, processed 1 billion pesos and $250,000 from February to September, buying U.S. goods for Cuban MSMEs in exchange for pesos at informal rates.