International

Cuba, crisis and dollarization: without foreign exchange there is no country

The shortage of bread and rice, liquefied gas and gasoline, basic medicines and public transport, even daily blackouts. Many symptoms of the Cuban polycrisis have their origin in a common problem: the lack of foreign exchange of a state that monopolizes vast sectors of the economy.

The Liquefied Gas Company reported on Monday that it had no balitas (cylinders) until “the next import”, just one day after a freighter with 24,000 tons of wheat docked in Havana, where the manufacture of bread had been paralyzed due to lack of flour.

For weeks the queues at the service centros (gas stations) have been perpetual and many electric generation engines remain at a stop due to a shortage of imported fuel, while large areas of the country suffer blackouts of 20 or more hours a day.

“There is a critical shortage of foreign currency in the country,” Cuban economist and doctor in Public Policies Tamarys Bahamonde told EFE.

Independent experts consulted by EFE agree to start with the collapse of national agricultural and industrial production, which has skyrocketed imports, which account for 80% of what the country consumes, according to the United Nations.

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In turn, the main sources of foreign exchange income – tourism, remittances, professional missions (mainly medical), sugar, the biopharmaceutical sector and nickel – have fallen significantly.

This has generated a strong imbalance in the accounts of the State, which exercises the monopoly of foreign trade and other key sectors.

“If there is no production that you can stop importing, we will not get out of this vicious circle,” says Cuban economist Omar Everleny, professor at the University of Havana.

The financial situation is such that in the middle of last year the Government began to decide on budget execution on a regular basis, depending on the actual income of each month.

The Cuban Government underlines the weight of US sanctions and the financial effects of their inclusion in the list of countries sponsoring terrorism for this crisis. The experts, for their part, highlight the internal causes (without denying the damage of the blockade or embargo).

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Cuban economist Ricardo Torres, a professor at the American University of Washington (USA), talks about structural imbalances of decades and denounces a bad allocation: “More than a problem of resources, it is a problem of use of money.”

He explains that the Government has financed in the last ten years a “massive construction of hotels” – a sector in the hands of Gaesa, the army’s business consortium – despite very low occupancy rates.

“Seeing the public numbers, I come to the conclusion that it is a country in crisis, without a doubt. But with that I can’t justify that there is not even for wheat,” he says.

The consensus among the experts consulted is that 2025 will be the same or worse than 2024, in which the economy contracted. After five years of serious crisis, Cuban domestic product (GDP) is below 2019 levels.

They do not believe that the measures announced by the Government at the end of 2024, including a deepening of the dollarization of the national economy from the State, will reverse the situation.

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Not without controversy, the Government has begun to charge in currency for customs procedures and higher octane gasoline, among others, in addition to converting part of its retail stores into establishments that sell in dollars.

Bahamonde sees in these decisions a copy of those that were taken in the crisis of the 1990s, and that were then reversed.

“It’s a way to raise money. Is it a long-term measure? No, will it guarantee economic development? No, what about growth? Neither. It is purely revenue, rential,” says the economist, who speaks of “subsistence economy.”

Everleny believes that many coordinated and in-depth reforms against the crisis in Cuba would be needed, something he does not perceive after the two severe adjustment packages approved in the last 15 months.

Bahamonde advocates making foreign trade more flexible, establishing a real foreign exchange market, extending participation to the private sector in domestic trade, renouncing the model of centralized administration, and eliminating Gaesa’s control over the Cuban economy, in general, and tourism, in particular.

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“All solutions are medium and long-term, but people on the street need solutions today. If drastic, quick measures are not taken,… the time horizon of the resolution is moving away,” he warns.

In Everleny’s opinion, “the state needs long-term aid, like the International Monetary Fund,” because the country has already reached the point of “break”.

However, he himself does not see this option as viable because Cuba does not belong to these international organizations and because he believes that the United States would not approve financing lines for Havana.

International

Mexico and Guatemala Agree on Five-Point Binational Plan for 2027

Mexico and Guatemala agreed Tuesday on a 2027 Binational Plan built around five areas of cooperation, along with a schedule of meetings and initiatives aimed at making progress by the end of 2026 on security, border infrastructure, human mobility, development and technical and social cooperation.

The agreement was announced by the foreign ministers of both countries following a meeting in Mexico City.

Mexican Foreign Minister Roberto Velasco said the plan will establish the “direction and priorities” of bilateral relations for next year. His Guatemalan counterpart, Carlos Ramiro Martínez, said the meeting allowed both governments to make decisions, schedule activities and revitalize bilateral cooperation mechanisms.

Security and border infrastructure

In the area of security, the two governments have nearly completed negotiations on a new memorandum of understanding for the Mexico-Guatemala High-Level Security Group (Ganseg), which was reactivated in 2025.

The countries expect to sign the agreement in the coming months to strengthen coordination and their ability to respond to shared security threats.

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Regarding their nearly 1,000-kilometer shared border, Mexico and Guatemala agreed to advance infrastructure improvements at border crossings and continue work on a joint cargo clearance program between Ciudad Hidalgo and Tecún Umán, two border areas separated by the Suchiate River.

The measures are intended to facilitate bilateral trade while making cross-border exchanges safer and more efficient.

The two governments will also continue defining a route toward a railway connection between their countries through Line K of Mexico’s Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT), with the aim of strengthening economic and community ties.

Migration and development

On human mobility, Mexico and Guatemala will maintain coordination to ensure safe, orderly and dignified returns, while strengthening protection for people in transit.

The bilateral agenda also includes a second phase of the Sembrando Vida program in Guatemala, which is expected to benefit 10,000 people across 15 departments.

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Both countries will also advance initiatives under Juntos para el Bienestar, as well as six technical, scientific and energy cooperation projects approved by the Joint Commission.

The agreements seek to strengthen bilateral ties and establish concrete priorities for cooperation between Mexico and Guatemala during 2027.

International

France to Expel Two Iranian Diplomats Over Alleged Attack on French Officials

French Foreign Minister Jean-Noël Barrot announced Tuesday, August 18, 2026, that France will expel two Iranian diplomats in response to what Paris described as an attack on two French representatives in Iran last month.

“Two French diplomats were scandalously and deliberately assaulted on July 19. I had announced that this intolerable act would have consequences. It has now happened. Two Iranian diplomats in France will be expelled in the coming days,” Barrot said in a message posted on X.

The two Iranian diplomats have been declared persona non grata and will be required to leave France within the coming days, according to the French foreign minister.

About a month ago, Barrot said that two members of the French diplomatic staff had been detained by Iranian security forces for several hours. One of them was also subjected to harassment, he said.

The French government described the incident as an “extremely serious act of intimidation” that violated diplomatic immunity.

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The two French embassy staff members were working on programs supporting Iranian civil society, particularly initiatives involving artists and researchers.

Iran has denied France’s allegations regarding the incident. The diplomatic dispute comes amid already strained relations between Paris and Tehran.

International

Heat wave puts more than 70 million Americans under alerts as temperatures near 46°C

36 deaths reported due to heat wave in Nuevo Leon, Mexico

More than 70 million people remained under heat alerts Monday as an intense heat wave continued across the southern United States, particularly Florida and states along the Mexican border, where temperatures and heat indexes could reach as high as 46 degrees Celsius, according to the National Weather Service (NWS).

Several cities recorded or tied temperature records over the weekend and into Monday, including Miami and Fort Lauderdale in Florida; Laredo, Borger and Austin’s airport in Texas; Atlanta, Georgia; Raleigh and Charlotte, North Carolina; and Memphis, Tennessee.

The NWS warned that the heat wave will continue affecting the southern and southeastern United States, with maximum temperatures expected to remain near 38°C to 40°C for several days. The heat index, which combines temperature and humidity to estimate how hot conditions feel, could reach 46°C.

The extreme heat is also spreading into the Southwest, where temperatures began rising again between Monday and Tuesday. Forecast highs in the region range from about 38°C to 43°C.

Heat alerts remain in effect across Nevada, Arizona and California, including areas in southern Arizona and California near the Mexican border, as authorities warn of the risks posed by prolonged extreme temperatures.

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The NWS urged residents to limit outdoor activity, stay hydrated, ensure access to air conditioning or cooling centers, and check on vulnerable friends, neighbors and family members.

The United States is experiencing a summer marked by above-average temperatures and repeated heat waves. One of the most intense episodes occurred during the July 4 weekend, when extreme heat was blamed for roughly 30 deaths.

July was the hottest month ever recorded in the United States since measurements began, with the average temperature across the contiguous country approaching 25°C, according to the National Oceanic and Atmospheric Administration (NOAA).

The combination of extreme heat and drought conditions has also fueled wildfires. Nearly 3 million hectares have burned across the country so far in 2026, making it the largest area affected by wildfires in a decade.