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The recent announcement by the Cuban regime regarding the permanence of accounts in Convertible Currency (MLC) has sparked outrage among the population.
Many citizens expressed frustration on social media, claiming that the financial system on the island does not provide them with real access to the dollars deposited in banks, which have been converted into MLC, while the government is now opening stores that only accept payments in foreign currency.
The regime’s promises about the validity of digital currency lack credibility for many people who see the MLC stores empty, in contrast to those that accept dollars.
Alberto Javier Quiñones, First Vice President of the Central Bank of Cuba, intervened this Wednesday in the official program Mesa Redonda to assure that "the accounts in MLC that customers currently have with their banks will not disappear" and that the rumors regarding their elimination are "false."
He also stated that "the commitment of banks and their clients to the funds they hold is guaranteed." However, Cubans reacted with skepticism and annoyance to the official's statements because they believe that the government leaves the MLC accounts trapped in a financial limbo.
Outrage of Cubans on social media
Citizens have reported that, despite having funds in MLC backed by dollars and euros, they are unable to use them in the new USD stores. This situation has led to countless criticisms and confusion regarding access to essential goods.
A user on social media stated: "What has never been explained is why that MLC card, which is also backed by USD, cannot be used in those stores, if in the end the government is the one controlling all that money in Cuba."
Another Cuban reported the lack of transparency in the banking system: "And why is my MLC card, backed by USD held outside of Cuba, not useful for dollar stores? How are they going to supply the two types of stores if there’s not enough for one?"
The confusion and anger become more evident in testimonies like the following:
"What they want is to drive us crazy. Family sends euros or dollars, they arrive on the card and along the way they convert to MLC. Then you go to the store and it's empty, there's nothing in MLC, but we have new stores in USD. You go with your MLC card, which is supposedly dollars, and they won't accept that. You have to have a Clásica card. You go to the bank, ask them to transfer your euros or dollars to the Clásica and they say no, that they are not dollars, but MLC. With great effort, you buy dollars with the MLC and put money in the Clásica, losing a lot of money in the process. You finally arrive at the store and with the prices of everything, you can only afford a bottle of oil and an apple. In change, a few candies. You get home and your wife asks if that was all you bought with the bundle of MLC you had. You pop a candy in her mouth, give her a kiss, and call Mazorra to see if they can accommodate one more person."
Distrust in the Cuban financial system is growing
Criticism not only focuses on currency conversion but also on the lack of trust in the Cuban banking system. One user wrote:
"But no one asked whether it disappears or not. People want to know WHY that card cannot be used in the new stores if the MLC is real currency deposited in the bank. Where is that money? Will it be possible to withdraw the MLC in cash to purchase in those stores? What has just been published does not answer anything. And you cannot trust the banks in Cuba. Anyone who keeps money there for emergencies or problems is out of their mind because, believe me, it's a scam. Once trust is broken, it is very difficult to rebuild. And you broke it, ground it to dust, and used it as fertilizer."
Another citizen questioned the inequality in access to essential goods:
"Fincimex, explain to us how a minimum wage worker earning 2,200 pesos can purchase any products in those stores that are priced in dollars, where the vast majority of food and essential household items are available. I need to know what is being done so that the entire population can enjoy these benefits, since the average Cuban cannot even dream of this. They were supposedly going to supply the national currency stores with those foreign currencies, but that never happened. In fact, they have been removing everything instead. Nothing is coming in anymore."
Dollarization of the Cuban economy and social exclusion
The government has defended partial dollarization as an "important measure to ensure resources in the country" and to "guarantee the interlinking of economic sectors," said the First Deputy Minister of the Ministry of Economy and Planning, Mildrey Granadillo.
However, most citizens see this measure as a mechanism of exclusion, whereby only those with access to dollars can purchase basic goods.
The coexistence of stores in MLC and in dollars has only heightened the crisis of confidence in Cuba's financial system.
While the regime insists that the MLC accounts will not disappear, citizens are wondering what the point is of maintaining a balance in a currency that does not allow them to access essential goods. Indignation is growing, and "trust in the Cuban financial system is broken forever."
Frequently Asked Questions about MLC Accounts and Dollarization in Cuba
What is happening with the MLC accounts in Cuba?
According to the Cuban government, MLC accounts will not disappear, despite rumors of their elimination. However, many citizens feel frustrated because they cannot use these accounts in the new stores that only accept dollars, which generates distrust and criticism towards the country's financial system.
Why are Cubans outraged with the payment system in stores?
Indignation arises because, despite having funds in MLC, Cubans cannot use them in the new stores that only accept dollars. This has created an unequal system where only those who have access to dollars can purchase basic products, leaving many citizens with the feeling of being trapped in a financial limbo.
How does the partial dollarization of the Cuban economy affect the population?
Partial dollarization has exacerbated inequalities in access to consumer goods, as only those with access to dollars can purchase products in the new stores. This has created a parallel market and deepened the crisis of confidence in the Cuban financial system.
What measures has the Cuban government taken regarding stores in foreign currency?
The government has inaugurated stores that accept only dollars as a way to attract foreign currency and keep the economy afloat. However, these measures have been criticized for creating social exclusion and not addressing the issue of shortages in stores that operate in national currency.
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