The dollarization of retail continues to advance in Cuba, with at least 85 stores nationwide operating exclusively in US dollars, according to a list published by the independent media elTOQUE. These establishments do not accept payments in freely convertible currency (MLC) or in Cuban pesos (CUP); they only accept cash in dollars or authorized cards, such as Clásica, AIS, and Tropical from the Banco de Crédito y Comercio (Bandec).
The stores are mainly concentrated in Havana, but they have also expanded to provinces across the country, from Pinar del Río to Guantánamo.
Although the state chains CIMEX and Tiendas Caribe had stated that stores in dollars would not exceed 7% of the total, the current figure far exceeds that threshold. Many establishments have been converted to this format without prior notice, causing frustration and dissatisfaction among citizens.
The first establishment reported under this modality was the supermarket at 3ra y 70 in Havana. The location, which opened last January without an official announcement from the government, only accepts dollars and has prices that exceed the average monthly salary in Cuban pesos.
In the previous December, Prime Minister Manuel Marrero Cruz announced before the National Assembly the approval of a document regulating the "partial dollarization of the economy". The measure allowed the use of foreign currency in sectors such as retail, airports, clinics, and tourism. On that occasion, Marrero also attributed the dollarization to the informal market and the private sector, noting that selling in foreign currencies without state authorization would not be permitted.
In February of this year, authorities from the Ministry of Domestic Trade reported that the joint venture Alma Caribe S.A. will open 50 stores across the country, of which 48 will be newly constructed. Deputy Minister Aracelys Cardoso Hernández explained that this measure is a response to the shortage of supply in national currency, and aims to attract foreign currency as a way to sustain domestic trade.
The commercial company Mercalhabana S.A. was also introduced, aimed at operating in wholesale and retail trade with foreign currency, and participating in partnerships with foreign capital.
The economist Pedro Monreal, for his part, has criticized the currency commercialization model, noting that it does not guarantee supplies or stable production, and prioritizes the expansion of state commercial infrastructure. He has also pointed out that dollarized trade is still controlled by state enterprises, while the private sector remains excluded.
In recent days, during a meeting of the Council of Ministers, the leader Miguel Díaz-Canel indicated that the acquisition of foreign currency should be an economic priority. He suggested seeking foreign currency income "through avenues different from the traditional ones" and mentioned the need to attract foreign investment and advance in the process of banking integration.
The statements were made in the context of a decline in tourism, failures in exports, low agricultural production, and a liquidity crisis, factors that directly affect the availability of basic goods in the country.
Frequently Asked Questions about Partial Dollarization in Cuba
What does partial dollarization mean in Cuba?
Partial dollarization in Cuba means that certain stores and economic sectors operate exclusively in US dollars, limiting the use of the Freely Convertible Currency (MLC) and the Cuban peso (CUP). This measure aims to attract foreign currency in a context of scarcity, but it exacerbates inequalities, as many Cubans do not have access to dollars.
How many stores in Cuba operate exclusively in dollars?
Currently, at least 85 stores in Cuba operate exclusively in US dollars. These stores are scattered throughout the country, from Havana to Guantanamo, and only accept cash in dollars or through authorized cards.
How does dollarization affect Cubans' access to basic products?
Dollarization limits Cubans' access to basic goods, as many do not have access to foreign currency. While dollar stores are well-stocked, those operating in local currency face shortages, which exacerbates frustration and social discontent.
What sectors of the Cuban economy are involved in partial dollarization?
Partial dollarization encompasses sectors such as retail and wholesale trade, tourism, international clinics, airports, and other strategic economic areas. These sectors accept cash in dollars and aim to attract foreign currencies to confront the economic crisis in Cuba.
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