• dariusj18@lemmy.world
      link
      fedilink
      arrow-up
      0
      ·
      15 days ago

      The question is, with what currency? The Cuban dollar is not really worth anything outside Cuba, so they can only rely on exports to fund currency needed to buy imports.

      • Rapidcreek@lemmy.worldOP
        link
        fedilink
        arrow-up
        0
        ·
        15 days ago

        This is true, but not due to a US embargo. I should think that the state has access to many different currencies. But, in the end, they have limited resources. Cigars, some Rum (though a lot of countries distil and export rum in the Caribbean). They used to export mercenaries and doctors but noone is buying now.

        • prole@lemmy.blahaj.zone
          link
          fedilink
          arrow-up
          0
          ·
          edit-2
          14 days ago

          You don’t think being explicitly barred access from what is essentially considered “the world currency” at this point wouldn’t change their access? C’mon.

          • Rapidcreek@lemmy.worldOP
            link
            fedilink
            arrow-up
            0
            ·
            edit-2
            14 days ago

            They’re not barred from access. Just can’t use US banks. There are many banks in the world.

                • prole@lemmy.blahaj.zone
                  link
                  fedilink
                  arrow-up
                  0
                  ·
                  14 days ago

                  Do you know what the Petrodollar is? Have you ever seen USD called “the World’s Reserve Currency”? There are reasons for this. The majority of world commerce is done using USD.

                  The US dollar has served as the world’s leading reserve currency since World War II. Today, the dollar represents 58 percent of the value of foreign reserve holdings worldwide. The euro, the second-most-used currency, comprises only 20 percent of foreign reserve holdings.

                  https://www.atlanticcouncil.org/programs/geoeconomics-center/dollar-dominance-monitor/

                  As the article goes on to say, Russia’s invastion of Ukraine, and BRICS attempt to move away from USD toward other currencies like the Yuan, is changing the landscape as we speak.

                  But since 1963, or whenever the fuck it started, the USD has dominated. The act of simply not allowing a nation to participate in that, for such a long time, does a lot of damage. I think Cuba has done pretty well for itself, all things considered.

                  • Rapidcreek@lemmy.worldOP
                    link
                    fedilink
                    arrow-up
                    0
                    ·
                    14 days ago

                    Yeah, I know what a petrodollar is. Played the oil spot market years ago. So, I’m guesstting you must be indicating that Cuba can’t pay for oil. That’s nonsense. Let’s suppose they have their money at HSBC, a Chinese bank in Hong Kong. They make a deal for oil supply with Mexico. To pay for it, they have HSBC move money from Hong Kong to Mexico in USD.

            • blackbelt352@lemmy.world
              link
              fedilink
              arrow-up
              0
              ·
              14 days ago

              They’re allowed to play monopoly, they just can’t use the regular monopoly money.

              The global economy is run on the US dollar. It’s the measuring stick all other currencies use as a reference point.

                • blackbelt352@lemmy.world
                  link
                  fedilink
                  arrow-up
                  0
                  ·
                  13 days ago

                  And the US Dollar is the measuring stuck upon which all other currencies are based upon. I’d it takes all kinds of regulatory and embargo based nonsense for a bank to play ball with the US and Cuba, that bank won’t do it.

                  • Rapidcreek@lemmy.worldOP
                    link
                    fedilink
                    arrow-up
                    0
                    ·
                    13 days ago

                    I used to get paid in Euro with a release of funds directly to a foreign account. The account that bank was associated with was turned into USD upon entry. It’s really not that hard.

    • IninewCrow@lemmy.ca
      link
      fedilink
      English
      arrow-up
      0
      ·
      edit-2
      15 days ago

      You are technically correct … but there are several convoluted rules and regulations controlled and mandated by the US that it makes it either very difficult or impossible for most countries to do business or trade with Cuba.

      Cuba can trade with anyone they want … it’s just purposely made so difficult that very few do so and the ones who do provide very little in exchange.

      https://www.politifact.com/factchecks/2021/jul/19/facebook-posts/cuba-can-trade-other-countries-heres-some-context/