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

Oil prices surge again as Middle East tensions persist

Oil prices climbed again on Friday for a second consecutive session, as markets remained concerned about a prolonged conflict in the Middle East with no tangible diplomatic progress.

North Sea Brent crude for May delivery rose 4.22% to close at $112.57 per barrel.

Meanwhile, U.S. West Texas Intermediate (WTI) approached the $100 mark, settling at $99.64, up 5.46%.

The decision by U.S. President Donald Trump to delay by ten days his ultimatum for the reopening of the Strait of Hormuz failed to reassure market participants.

“It means there will be ten additional days of disruptions in the Middle East for crude and refined product flows,” said Andy Lipow, of Lipow Oil Associates.

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“For prices to come down, a resolution to the conflict is necessary,” Lipow added. “And even in the event of a ceasefire, it is not certain that Iran would allow oil shipments to pass through the Strait of Hormuz.”

International

Young Spanish Woman Receives Euthanasia After Legal Battle, Sparking Debate

A 25-year-old Spanish woman, Noelia Castillo, received euthanasia on Thursday following a prolonged legal dispute with her father.

She passed away at a care center in Sant Pere de Ribes, about 40 kilometers from Barcelona, where she had been living for some time, according to Spanish media reports.

In an interview broadcast a day earlier on Antena 3, Castillo expressed her exhaustion after enduring prolonged suffering. She indicated that her decision was influenced by a combination of personal circumstances and health-related challenges, including family conflicts and a condition of paraplegia following a previous incident that left her with lasting physical consequences.

Spain legalized euthanasia in 2021, becoming one of the few countries that allow patients under strict conditions to seek medical assistance to end their lives in order to avoid what the law defines as unbearable suffering.

The case has reignited debate in Spain over the ethical, legal, and family dimensions surrounding euthanasia, as well as the broader issue of support for individuals in vulnerable situations.

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International

Over 300 U.S. Troops Wounded Since Start of Iran Conflict, CENTCOM Says

More than 300 U.S. service members have been injured since the start of the conflict with Iran on February 28, the United States Central Command confirmed on Friday.

“Since the beginning of Operation Epic Fury, approximately 303 U.S. service members have been wounded. The vast majority of these injuries are minor, and 273 troops have already returned to duty,” said U.S. Navy Captain Tim Hawkins.

A U.S. official, speaking on condition of anonymity to AFP, indicated that 10 American troops remain seriously injured.

According to the latest figures, an additional 13 U.S. service members have been killed since the conflict began, including seven in the Gulf region and six in Iraq.

Meanwhile, Iran’s armed forces warned on Friday that hotels hosting U.S. troops in the region could be considered legitimate military targets.

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“When U.S. forces enter a hotel, from our perspective that hotel becomes American,” said armed forces spokesperson Abolfazl Shekarchi in remarks broadcast on state television.