Biden will allow Cuban companies into the US banking system

The US Treasury Department has eased a series of restrictions on Cuba, adding to the list of measures against the communist island that the Biden Administration has relaxed.

According to The Washington Post, the Biden administration amended and clarified sanctions to allow Cuban companies to open bank accounts in US banks and access internet services in America.

The Treasury Department clarified that the new measures apply only to private Cuban enterprises not associated with the Cuban Government or Communist Party.

The private sector has grown since the Cuban government permitted the creation of medium—and small-scale private enterprises in 2021. More than 10,000 operate on the island.

According to the international news agencies stationed in Cuba, the private sector employs a third of the workforce. It has already surpassed the number of state companies.

So, it is a vital sector for the economy, especially as Cuba suffers one of the most significant economic crises in its history with food, medicine, fuel shortages, and power cuts.

The international media on the island says one of the main reasons behind the crisis is a failed 2021 economic policy to eliminate the double currency on the island. The government admitted it was a failure.

Still, some also attribute part of the economic crisis to the US's reinforced sanctions, especially Trump's decision to reinstate Cuba as a state sponsor of terrorism.

According to The Washington Post, Biden officials said fueling the private sector will give the Cuban people an alternative, as "it's clear the communist experiment has failed, and the government is no longer able to provide for its citizens."

The administration also seeks to avoid deepening Cuba's dependence on Russia or China. "We believe the organic expansion of the private sector, led by the Cuban people themselves and not by any foreign government, is critical," they added.

Immigration is another reason for the Biden Administration to care about Cuba's economy. According to The Washington Post, around half a million Cubans entered the country illegally since 2021. Roughly 5% of Cuba's population.

Biden also issued particular immigration policies for the island, allowing around 20,000 Cubans to enter the US legally each month, provided they have a family to support and sponsor them.

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