Cuban President Díaz-Canel unveils package of reforms to liberalise the economy

Cuban President Miguel Díaz-Canel announced the reform package on Friday in a speech to the National Assembly of People's Power, presenting it as the government's response to the deepening economic crisis. According to El País, the package includes a new tax regime for small and medium private businesses, free access to foreign-currency deposits at state banks, and looser minimum-stake rules for foreign-owned joint ventures.

Díaz-Canel said the dual exchange-rate system would be wound down in stages and control of state enterprises would be devolved from central planners to municipal authorities and sector ministries. The government also said it would narrow the scope of retail price controls and convert subsidies on some staple goods into targeted social transfers. Independent economists in Havana welcomed the direction but said the pace of implementation and the foreign-exchange balance would be decisive.

Cuba's economy contracted by more than 3% in 2025, with daily blackouts of up to 12 hours and food imports squeezed by external debt problems. In Latin America, Mexico and Brazil signalled they would reopen short-term credit lines to Havana, while talks with the European Commission are expected to resume in the coming weeks. This is not investment advice.