A Cuban woman reported the shortages at the foreign currency (MLC) store Galerías Paseo while the regime concentrates its resources in dollar stores.
“Here is the store in MLC Galerías Paseo, Vedado; only the completely empty market 'works,' with empty shelves and the same repeated products that no one buys, it looks like an ice skating rink,” Marina Álvarez reported on Facebook.
This Cuban shared images of empty shelves and refrigerators, as well as deserted aisles. A reality that the regime tries to silence.
"In appliances, there are only 3 products: a blender, a rice cooker, and I can't remember the other one. There’s no air conditioning; it’s like a sauna... In the distance, a voice shouts: 'You can't take photos!!!!' PS: They’re going to repair it to sell in dollars; hard currency = life getting harder and harder!" they added.
This situation of empty MLC stores and fully stocked stores in dollars is beginning to repeat itself in the capital, adding to the country's delirious reality.
In January, it became apparent that in the popular commercial area of 3rd and 70, in the municipality of Playa, Havana, the store in Free Convertible Currency (MLC) appeared increasingly understocked, while the new store operating in US dollars, located on the ground floor of the Gran Muthu Habana Hotel, showcased filled shelves and a steady stream of customers.
Introduced in 2019, the MLC stores were a measure by the Cuban government to attract foreign currency amidst a growing economic crisis and shortage of basic goods.
These stores allow the purchase of goods using foreign currencies like the US dollar or the euro, through magnetic cards linked to accounts in these currencies.
However, this year, in yet another of the usual shifts in the regime's economic policy, the dollarization of retail trade has become established in Cuba, with at least 85 stores nationwide operating solely in U.S. dollars.
These establishments do not accept payments in freely convertible currency (MLC) or in Cuban pesos (CUP); they only accept cash dollars or authorized cards, such as Clásica, AIS, and Tropical from the Credit and Commerce Bank (Bandec), making it an impossible option for many Cubans.
The stores are mainly concentrated in Havana, but they have also expanded to provinces across the country, from Pinar del Río to Guantánamo.
Frequently Asked Questions About the Situation of Stores in Cuba
Why are the MLC stores empty while the dollar stores are stocked?
The stores in MLC are empty because the Cuban government has decided to concentrate its resources on stores that operate exclusively in dollars. The partial dollarization seeks to attract foreign currency to sustain the economy, but it has generated inequality and shortages in stores that operate with the Freely Convertible Currency (MLC).
What does the partial dollarization of the Cuban economy mean?
The partial dollarization of the Cuban economy means that the government allows transactions in US dollars in certain economic sectors. This includes stores that only accept dollars, excluding payments in Cuban pesos or MLC, which has exacerbated inequalities in access to basic goods.
Why don't dollar stores accept MLC?
The dollar stores do not accept MLC because the Cuban regime prioritizes transactions in dollars to attract hard currencies. Although MLC cards are topped up with dollars or euros from abroad, the government has decided that these will not be valid in the new stores, generating criticism for the lack of transparency and arbitrariness in their policies.
What is the impact of the current economic policy on the Cuban population?
The current economic policy has increased inequality and discontent among Cubans. The scarcity of products in MLC stores and the exclusivity of payments in dollars in others have left many without access to essential goods, exacerbating the social and economic crisis on the island.
What future is expected for the Free Convertible Currency in Cuba?
The future of the freely convertible currency in Cuba is uncertain, with trends pointing towards its disappearance. Despite its recent increase in value in the informal market, the growing dollarization and restrictions on the use of the MLC in official stores suggest that its relevance may decline in the medium and long term.
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