The Cuban regime reopened the doors of the Infanta and Santa Marta Market in Havana this Thursday, featuring a wide range of food products, frozen items, beverages, and hygiene products, but with a significant change in its payment system: it no longer accepts freely convertible currency (MLC).
Despite previously allowing transactions in MLC, payments can now only be made with VISA, MasterCard, MIR, and prepaid cards issued by BANDEC, AIS, Viajero, and Clásica, the latter offering a 5% discount incentive on purchases, according to a post on Facebook by Tiendas CARIBE División Habana Oeste.
The establishment is operating in collaboration with the company Vima and promises to "serve better than ever" its customers. However, the change has caused some displeasure, as the MLC cards are still recharged from abroad, but now they are not valid in this space, which reinforces the perception of arbitrariness in the economic policies of the Cuban government.
The supermarket at 3rd and 70 that only accepts dollars
It is worth noting that in January, the 3ra y 70 supermarket was inaugurated in Playa, which is only accessible with dollars. It stands out for its variety of products and high prices that exceed the average salary of workers, reflecting inequality and dollarization in Cuba.
In addition to the mentioned spaces, the regime has authorized more than a dozen wholesale and retail businesses in foreign currency, eight of which are linked to the MINCIN business system.
While the government promotes such businesses in its desperate quest for foreign currency, the population continues to face difficulties acquiring basic products in the national currency.
The dollar prevails
In December, the Cuban government approved a document that regulates the "partial dollarization of the economy", as announced by Prime Minister Manuel Marrero Cruz during the fourth ordinary session of the National Assembly.
This measure, which reflects the increasing influence of the U.S. dollar in the country, seeks (for the umpteenth time) to reorganize key sectors of the economy while attempting to control the impact of the informal currency market.
The partial dollarization scheme covers the following sectors: wholesale and retail trade in previously approved currencies; and payment of tariffs and services related to foreign trade for non-state management forms.
Additionally, cash in dollars is accepted in strategic sectors such as tourism, Casas del Habano, pharmacies, optical shops, international clinics, and airports. Furthermore, there are payments in foreign currency to agricultural producers who substitute imports and to those who manufacture exportable goods.
According to the regime, this regulation must also allow greater flexibility in the use of foreign currency for specific economic activities, such as tourism and foreign trade, which are key sectors for generating income amid the economic crisis.
Frequently Asked Questions about the elimination of MLC in the new store in Havana
Why does the new store in Havana no longer accept payments in MLC?
The store has eliminated payments in Freely Convertible Currency (MLC) and now only accepts VISA, MasterCard, MIR, and prepaid cards issued by BANDEC, AIS, Viajero, and Clásica. This change has caused discomfort, as MLC cards, even when recharged from abroad, are no longer valid in this space, reinforcing perceptions of arbitrariness in the economic policies of the Cuban government.
How does the partial dollarization of the Cuban economy affect the population?
The partial dollarization of the Cuban economy, which includes the opening of stores that only accept dollars, exacerbates social inequalities as a large portion of the population does not have access to this currency and continues to receive their salary in national currency. This has created a parallel market that leaves many citizens on the sidelines.
What payment methods does the Infanta and Santa Marta store in Havana accept?
The Infanta and Santa Marta store no longer accepts payments in freely convertible currency (MLC). Now, payments can only be made with VISA, MasterCard, MIR cards, and prepaid cards issued by BANDEC, AIS, Viajero, and Clásica, the latter offering a 5% discount on purchases.
What impact does the opening of dollar stores have on the informal currency market in Cuba?
The opening of stores that only accept dollars has increased the demand for this currency, causing a rise in the exchange rates of the informal market. This phenomenon directly impacts Cuban citizens, who face difficulties accessing the foreign currencies needed to purchase basic products.
What is the strategy of the Cuban government regarding the partial dollarization of the economy?
The Cuban government has implemented the partial dollarization of the economy as a strategy to reorganize key sectors and attract foreign currency. This measure aims to allow more flexibility in the use of foreign currency for specific economic activities, such as tourism and foreign trade, in an attempt to manage the impact of the informal exchange market and generate income amid the economic crisis.
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