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The official newspaper Granma, the mouthpiece of the Communist Party of Cuba (PCC), published on Tuesday a defense of the partial dollarization of the economy, which the regime has described as a "necessary" measure to control the flow of foreign currency and counteract the illegal currency exchange market operating on the island.
According to the media, Prime Minister Manuel Marrero Cruz, during the Fourth Ordinary Period of Sessions of the National Assembly of People's Power, argued that this partial dollarization aims to redirect the foreign currency currently circulating in the informal market towards state mechanisms.
“The main goal is to gain control over the foreign currencies that are currently circulating illegally in the social environment, so that, in this way, ‘put them to work for the well-being of the population’,” stated Marrero.
While the government insists that “the path forward is the de-dollarization of the economy”, it also acknowledges that this measure will be temporary, with territorial schemes of dollarization focused on export sectors and specific spaces such as international pharmacies, optical shops, and waiting areas in airports, where payment in foreign currency is already accepted.
Among the most controversial measures announced is the payment of tariffs in foreign currency for non-state management forms, as well as the acceptance of cash in dollars in certain establishments.
Although the government justifies it as an attempt to address the "distortions" of the informal market, these measures perpetuate an unequal economic model, where only those with access to foreign currency can meet basic needs or participate in strategic sectors.
Additionally, wholesale and retail sales in foreign currency will be authorized, but only with prior centralized approval, which reinforces the reliance on bureaucratic decisions that have historically demonstrated inefficacy and corruption.
The regime admits that "there is a dollarization that has not been controlled" and claims that this model aims to regulate the chaos of the illegal currency exchange market.
However, this justification seems to overlook the root of the problem: an outdated monetary system, the rapid devaluation of the Cuban peso, and the state's inability to ensure equitable access to basic goods and services.
While official words speak of "well-being for the population," the reality presents a bleak picture for those who do not have access to dollars or euros, leaving them excluded from these markets and facing a national currency that loses value day by day.
Although the government defends these measures as temporary and necessary, it does not explain how or when this scheme of partial dollarization will be dismantled, nor how it will ensure that the benefits actually reach the population.
On the contrary, these measures seem to widen the gap between those who have access to foreign currency and those who survive on Cuban pesos, in a country where most salaries are not enough to cover basic needs.
The discourse of Granma and the government seeks to normalize dollarization as a necessary evil, but for many Cubans, it represents further evidence that the regime's priorities are far from alleviating the precariousness in which most people live.
The Cuban government, through its official account on X, published details on Tuesday about the measures approved as part of the partial dollarization of the economy, highlighting their "temporary" nature and focus on strategic sectors.
According to the statements made by the prime minister, these actions aim to regulate and control the circulating currencies in order to redirect them towards strengthening national production.
"It is aimed at intervening, at regulating this, and officially authorizes, also temporarily, the approval of dollarization schemes, especially for exporting sectors so that they can replenish supplies and continue producing, which will also have an impact on production in the national currency for the population," stated Marrero.
Among the approved measures is the implementation of wholesale and retail sales in foreign currency, although under strict centralized regulation and only in exceptional cases: “No one can sell in foreign currency without justification and approval.”.
Another highlighted action is the implementation of tariff payments in foreign currency, primarily for foreign trade operations conducted by non-state management entities.
In addition, the acceptance of cash in foreign currency will be allowed in certain establishments, justifying the measure by the difficulties in electronic payment processes that, according to the government, result in revenue losses.
These actions have been implemented in specific sectors such as tourism, Casas de Habano, international pharmacies, optical shops, international clinics, and last-minute lounges at airports, reflecting a focused approach on services that traditionally handle transactions in foreign currency.
In addition, schemes have been approved to directly pay certain producers a component in foreign currency. This measure is aimed at those who produce exportable goods or are agricultural producers, with the goal of enabling them to acquire inputs and keep their operations active for the benefit of the national economy.
The measures announced reflect an attempt by the government to manage dollarization in a centralized and controlled manner, although they have raised questions regarding their impact on economic inequality and the limited access of the general population to the foreign currency needed to participate in these markets.
Frequently Asked Questions about Partial Dollarization and Economic Measures in Cuba
What is the partial dollarization of the Cuban economy?
Partial dollarization in Cuba involves allowing the use of the US dollar in certain economic sectors such as wholesale and retail trade, customs payments, and foreign trade services. This measure aims to reorganize key sectors and control the informal currency market amid the economic crisis facing Cuba. The stated goal is to capture foreign currency and manage its flow, although it increases economic inequality by favoring those who have access to dollars.
How does partial dollarization impact the Cuban population?
Partial dollarization impacts the Cuban population in an unequal manner, as only those with access to foreign currency can meet basic needs and participate in strategic sectors. The majority of Cubans, who receive their income in pesos, are excluded from these markets, facing an increase in inequality and a loss of value of the national currency.
What are the main criticisms of partial dollarization in Cuba?
The criticisms of partial dollarization focus on the fact that it perpetuates an unequal economic model, where only those with access to dollars can fully participate in the economy. Furthermore, it is argued that these measures deepen the divide between those who have access to foreign currency and those who survive on Cuban pesos, in a context of increasing economic inequality and lack of equitable access to basic goods and services.
Which sectors will accept cash payments in dollars in Cuba?
In Cuba, the sectors that will accept cash payments in dollars include tourism, Casas del Habano, pharmacies, opticians, international clinics, and airports. Additionally, payments in foreign currency will be allowed for agricultural producers who replace imports and for manufacturers of exportable goods. These measures aim to reorganize the economy and attract more foreign currency amid the economic crisis.
How does the Cuban government respond to criticisms regarding partial dollarization?
The Cuban government justifies partial dollarization as a transitory and necessary measure to control the flow of foreign currency and strengthen the economy. However, it has not provided clear details on how and when this scheme will be dismantled, nor how it will ensure that the benefits actually reach the population. Criticisms focus on the lack of transparency and the increase in economic inequality that these measures could cause.
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