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In its umpteenth attempt to attract foreign currency, the Cuban government launched a “new incentive” for the use of the Clásica dollar cards, offering a 4 percent discount on purchases made at the newly opened MCM Camacho S.A. Hygiene and Cosmetics Store, located on the Boulevard of San Rafael, in Havana.
The announcement was made by Fincimex S.A. on its social media, where it promoted the offer as "a lovely option for lovers", on the eve of Valentine's Day, coming up on February 14th.
However, this benefit only applies to payments made with government-authorized dollar cards or rechargeable cards, excluding MLC, even though they are also funded by remittances sent from abroad.
The new store, operated by the joint venture MCM Camacho S.A., occupies the space that previously housed the appliance store Giralt and, in recent years, a recycled clothing shop.
Its opening reinforces the regime's strategy of prioritizing trade in foreign currencies, increasingly limiting the purchase options for those who depend on the Cuban peso or MLC.
Partial dollarization? The government promotes its Clásica card with more advertising and reinforces inequality
The Cuban government has intensified the promotion of the prepaid card Clásica, a financial product in dollars (USD) that allows for the purchase of goods and services in the network of state stores and service centers in the country.
However, far from being an equitable economic solution, this initiative deepens economic inequalities and strengthens the population's dependence on access to foreign currencies, primarily benefiting the business conglomerate GAESA, controlled by the regime.
Within the government measures for 2025, the capture of foreign currency is a priority objective.
The Classic card, managed by Fincimex and the CIMEX Corporation, both entities under the control of GAESA, offers discounts at state chains such as CIMEX, Tiendas Caribe, and Trimagen, as well as on fuel purchases at service stations.
With the ongoing economic crisis, the government has reduced the supply in stores operating with CUP, increasingly shifting essential goods to the foreign currency market.
This model fosters the exclusion of those who rely on state salaries, normalizing an unsustainable monetary situation where the national currency is devalued and loses its function as a means of payment.
Intensive promotion and social inequality
The push for the Clásica card has been accompanied by an aggressive advertising campaign on social media and state media.
Publications from Tiendas Caribe and Fincimex highlight supposed benefits such as a 10% discount at the Gaviota tourism chain, another pillar of GAESA, and discounts ranging from 5% to 6% at various state-owned businesses.
Frequently asked questions about the Classic dollar card and the economy in Cuba
What is the Classic card in dollars and how does it work in Cuba?
The Classic card is a prepaid dollar card issued in Cuba that allows you to purchase goods and services in state-run stores and service centers. It is managed by Fincimex and the CIMEX Corporation, both under the control of GAESA. The card is designed to attract foreign currency, but its use is limited to those who have access to dollars, as it does not permit online purchases or transactions in other convertible currencies.
Why does the Cuban government promote the use of the Clásica card in dollars?
The Cuban government promotes the Clásica card in dollars as part of a strategy to attract foreign currency, in an effort to sustain the economy amid a prolonged crisis. This policy is part of a process of partial dollarization that aims to strengthen the presence of the dollar in the Cuban market, although at the cost of increasing economic inequalities and excluding those who do not have access to this currency.
What are the criticisms of dollar stores in Cuba?
Dollar stores have faced criticism for exacerbating economic inequality in Cuba. Many people believe that these stores are inaccessible to the majority of the population who only earn in Cuban pesos. Furthermore, they are seen as a government strategy to attract foreign currency, without providing real solutions to the shortage of basic goods and the supply issues in stores that operate in national currency.
How does partial dollarization affect the Cuban economy?
Partial dollarization in Cuba has led to economic segmentation where access to essential goods depends on the ability to acquire foreign currencies. This has created a parallel market that excludes those who rely exclusively on the Cuban peso, devaluing the national currency and perpetuating dependence on remittances and access to dollars. This economic model increases inequalities and limits development opportunities for the majority of the population.
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