HAVANA: Western Union suspended its operations across Cuba on Monday evening as new US sanctions kicked in, cutting a key lifeline for many struggling Cuban families as the coronavirus pandemic deepens the Communist-run island’s economic crisis.
US President-elect Joe Biden has promised to roll back some sanctions on remittances. But any lifting of the suspension could take time and until then, Cuban Americans are expected to resort to alternatives that are more costly, less secure and less rapid.
Remittances to Cuba are believed to be around $2 billion to $3 billion annually, representing its third biggest source of dollars after the services industry and tourism.
Money transfers from the United States via Western Union were estimated at more than $1 billion last year, the majority of which was sent from Florida, according to John Kavulich, president of the US-Cuba Trade and Economic Council.
Current options for remittances include agencies that hire “mules” to fly out to Cuba with cash and which predate Western Union’s start in Cuba 20 years ago, as well as companies that transfer dollars to Cuban accounts – though that money can only be used at state stores.
Cryptocurrency exchanges are also promoting themselves as an alternative. Cuban Americans can transfer digital currencies to middle men on the island who then give money to the Cuban Americans’ relatives.
But such platforms lack oversight, cryptocurrencies can fluctuate rapidly and unexpectedly in value and Internet access is still not a given in Cuba, Kavulich said.
“We’ve looked but there are no safe services,” said local resident Arturo Labaut.
The closures of Western Union’s 407 offices in Cuba came into effect after US President Donald Trump’s administration banned US firms sending remittances via military-controlled companies that include Western Union’s main Cuban partner.
His administration has also previously capped the amount Cuban Americans can send family members at $1,000 per quarter, and transfers of money to non-family members are no longer allowed.
The new ban comes just as Cuba has started enacting structural reforms to revive its state-run economy which have been long called for but which will spell pain for its residents in the meantime.
“It’s a bad time to be doing this because of the suffering it will cause,” said Florida International University professor Guillermo Grenier.
“It’s not governments that suffer, it’s people.”
Western Union closes Cuba offices close as sanctions bite
https://arab.news/g7ag3
Western Union closes Cuba offices close as sanctions bite
- Money transfers from the US via Western Union were estimated at more than $1 billion last year
- Current options for remittances include agencies that hire ‘mules’ to fly out to Cuba with cash
Closing Bell: Saudi main index closes in red at 10,947
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 208.20 points, or 1.87 percent, to close at 10,947.25.
The total trading turnover of the benchmark index was SR4.80 billion ($1.28 billion), as 14 of the listed stocks advanced, while 253 retreated.
The MSCI Tadawul Index decreased, down 25.35 points, or 1.69 percent, to close at 1,477.71.
The Kingdom’s parallel market Nomu lost 217.90 points, or 0.92 percent, to close at 23,404.75. This came as 24 of the listed stocks advanced, while 43 retreated.
The best-performing stock was Musharaka REIT Fund, with its share price up 2.12 percent to SR4.34.
Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 1.18 percent to SR17.20, and Saudi Industrial Export Co., which saw a 0.8 percent increase to SR2.51.
On the downside, Abdullah Saad Mohammed Abo Moati for Bookstores Co. was among the day’s biggest decliners, with its share price falling 9.3 percent to SR39.
National Medical Care Co. fell 8.98 percent to SR128.80, while National Co. for Learning and Education declined 6.35 percent to SR116.50.
On the announcements front, Red Sea International said its subsidiary, the Fundamental Installation for Electric Work Co., has entered into a framework agreement with King Salman International Airport Development Co.
In a Tadawul statement, the company noted that the agreement establishes the general terms and conditions for the execution of enabling works at the King Salman International Airport project in Riyadh.
Under the 48-month contract, the scope of work includes the supply, installation, testing, and commissioning of all mechanical, electrical, and plumbing systems.
Utilizing a re-measurement model, specific work orders will be issued on a call-off basis, with the final contract value to be determined upon the completion and measurement of actual quantities executed.
The financial impact of this collaboration is expected to begin reflecting on the company’s statements starting in the first quarter of 2026, the statement said.
The company’s share price reached SR23.05, marking a 2.45 percent decrease on the main market.
