It's our 19th anniversary!

USA and Cuba Restore Diplomatic Ties After 54 Years

The US and Cuba are restoring diplomatic ties which were broken in 1961 during president Eisenhower at the peak of the cold war. Numerous attempts on Fidel Castro’s life, the Bay of Pigs and more capped an era which saw the world on the brink of nuclear war. Now though, Havana and Washington have seen embassies of the opposite number open in their city. The US has removed Cuba from its list of terrorist financing countries and Switzerland is now no longer needed as a mediator between the countries.

This resumption of diplomatic ties means an end to political sanctions which the country had lived under for a decade. It’s worth mentioning that certain obstacles to progress have already been removed by Washington, but the final word on the full removal of the embargo rests with Congress.

A rough estimate of the damage these sanctions has incurred on Cuba is put at around 121 billion dollars. The Cuban powers that be are insisting on some sort of compensation payout, but this is more than unlikely to happen. The question of Guantanamo is also on the books for discussion.

Attention:

Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

Back to top