US Relaxes Transaction Rules on Cuba, Currency Barriers Still Remain

The United States is easing the manner of conducting transactions with Cuba, but obstacles in processing the US currency on the island nation still remain, US Deputy National Security Advisor Ben Rhodes told reporters on Tuesday.

WASHINGTON (Sputnik) — However, there were still "practical issues associated with how dollars are processed on the island," Rhodes added.

"By facilitating that ability to engage in transactions to pass through US financial institutions and pass through the dollar, we are making it easier for the Cuban economy to open up to the global economy," Rhodes explained.

Earlier on Tuesday, the US Department of the Treasury announced an easing of travel and transaction restrictions on Cuba, including allowing US banks to process cash and travelers checks presented by Cuban financial institutions.

Rhodes explained restrictions continue in Cuba on certain activities that US financial institutions can engage in and the United States aims to overcome them.

"[W]e did want to open up this space and these areas and again coupled with the change that was made with respect to credit in the last regulatory changes," Rhodes explained. "This should further our objective frankly of seeing a Cuban economy that is more able to evolve its own module and be connected to the global economy."

In December 2014, President Barack Obama announced the United States would normalize relations with Cuba. The two countries reopened embassies in their respective capitals last July after more than 50 years of hostilities and non-engagement.