New routes and challenges: Sending remittances to Cuba in the current context Title

In recent years, remittances to Cuba have experienced a significant decrease. During the 2019-2023 stage, a notable decrease was observed in money transfers to Cuba. In 2021, for example, there was a drop of 70.83% compared to 2019, while in 2022 remittances decreased by 45.1% compared to the same year.

A study conducted by economist Emilio Morales revealed that in the last 30 years, Cuba has received more than 50 billion dollars in cash in remittances and another 50 billion in consumer goods. During the first stage (1991-2006), known as the "Special Period", Cuban emigrants sent around 11,751 million dollars in cash to the island, of which 85% came from the United States. In the second stage (2007-2018), remittances reached a volume of 31,311.47 million dollars in cash, with a continuous significant contribution from emigrants in the United States. However, in the third stage (2019-2023), this significant decline in money transfers was observed.

The decrease in remittances to Cuba in recent years can be attributed to several key factors:

• Impact of the COVID-19 pandemic: The pandemic has had an adverse economic effect around the world, affecting the ability of Cuban emigrants to send money home. Job losses and reduced income among the Cuban diaspora, especially in countries severely affected by COVID-19, have limited their ability to financially support their families in Cuba.
  
• Changes in US policies: Policies implemented by the US administration have significantly influenced the flow of remittances. The restrictions imposed, such as the inclusion of Fincimex on the list of Restricted Cuban Entities by the US Department of State and the suspension of Western Union operations in Cuba, have made it difficult to send remittances through formal channels, which has contributed to the general decrease in the volume of remittances.
• Rising inflation and economic crisis in Cuba: Inflation and economic crisis in Cuba may also have played a role in the decline in remittances. With rising prices and shortages of basic goods, the real value of remittances has decreased, which could have discouraged some emigrants from sending money. Additionally, economic uncertainty on the island may have led Cubans abroad to seek other forms of financial support for their families, beyond traditional remittances.

Finding accurate data on the main countries sending remittances to Cuba is currently a challenge, due to the lack of detailed and updated information. However, based on recent history and general trends, it can be inferred that the United States has traditionally been the main sender of remittances to Cuba. This is due to the large Cuban diaspora residing in the United States, who have maintained close ties with their relatives on the island.

After the United States, other countries that have historically been significant sources of remittances to Cuba include Spain, Canada, Italy and Mexico. These countries are home to sizable Cuban communities, whose members often send financial support to their families on the island.

• Spain: With one of the largest Cuban diasporas in Europe, Spain has been a key sender of remittances to Cuba. Many Cubans emigrated to Spain due to family and cultural ties, and continue to maintain close relationships with their families in Cuba.
  
• Canada: Being a popular destination for Cuban emigrants, Canada also contributes significantly to the flow of remittances to Cuba. The Cuban community in Canada, although smaller compared to the United States, plays an important role in financially supporting their relatives on the island.
• Italy: With a well-established Cuban community, Italy is another European country from which remittances are sent to Cuba. These shipments are driven by family ties and the need to support loved ones in Cuba.
• Mexico: Given its geographic proximity and historical relations with Cuba, Mexico is also a notable source of remittances. Cubans living in Mexico often send financial support to their families in Cuba.

​​Government regulations and policies: The policies of both Cuba and remittance-sending countries will continue to play a crucial role. Changes in regulations, such as relaxing or tightening restrictions, will significantly influence the volume and form of remittances.

​​Innovations in payment methods: We could see greater innovation in payment methods, including cryptocurrencies and other forms of digital currency. Although these methods present regulatory and security challenges, they also offer potential for faster and less costly transactions.

Evolution of the Cuban economy: The economic situation within Cuba, including measures for economic liberalization and possible reform of the banking sector, will have an impact on the way remittances are received and used on the island.

Despite the restrictions and challenges, the flow of remittances has proven to be a crucial element for the survival and well-being of Cubans, both on the island and in the diaspora. Services like sendvalu offer an accessible and convenient platform to send remittances to Cuba, making it easier for Cubans abroad to support their loved ones safely and efficiently. In a context of economic uncertainty and political changes, the continuity and adaptability of these remittance services become an essential pillar to maintain the link between the Cuban diaspora and their homeland, contributing to a more stable and prosperous future for Cuba.