A new report on social media highlights the impact of dollarization in Cuba. The Cuban influencer Kary Sánchez, known as @kary_y_jony, documented her visit to a dollar store in Guantánamo, where a piece of beef exceeds 70 dollars. “This is unaffordable for Cubans,” she stated, reflecting the growing frustration over exorbitant prices in a country where the average salary hovers around 10 dollars per month.
The video, published on TikTok, shows shelves with repeated products, nearly empty refrigerators, and essential items at unaffordable prices. Disposable diapers, for example, cost around 10 dollars. Even the stores in MLC, which are theoretically intended to alleviate shortages, show little variety and high prices, according to the young woman’s complaint.
“The dollarization has permeated the entire island,” said Sánchez, who referred to the deep economic inequality generated by this trade model. During his tour, he placed a text on a trash can that read “The Cuban,” a visual metaphor for the economic abandonment of the majority of the population.
In the comments on the post, some users compared the situation to the Venezuelan crisis. Others called for structural changes and greater involvement of the private sector to combat inflation and promote national production.
This report adds to a growing wave of citizen testimonies revealing the impossibility of accessing basic products without foreign currency. In another previous video, the same creator demonstrated how with 10 dollars she was only able to purchase powdered milk, cookies, and mayonnaise in Havana. Similar experiences have been documented by Cubans living abroad, such as in the case of a young woman residing in Mexico who, with 23 dollars, could barely take home a few products from a store that accepts foreign currency.
The dollarization of retail has been increasing in Cuba, with at least 85 stores now operating exclusively in dollars. Many of these have been converted without prior notice, leading to dissatisfaction among citizens. The government has officially acknowledged this “partial dollarization,” with new openings like the Caribbean Wholesale Mariel, where payments are accepted only in USD, not in Cuban pesos or MLC.
Economists like Pedro Monreal have warned that this model does not guarantee supplies or stable production, and that it deepens inequalities between those who have access to foreign currency and those who live solely on their earnings in pesos. In regions like Holguín, citizens have also reported “excessively high” prices and a lack of essential products.
As the number of businesses that accept only dollars and offer a better selection multiplies, millions of Cubans face the daily dilemma of buying food at international prices with a salary in Cuban pesos, which increasingly stretches less and less. In this scenario, accessing a piece of meat can cost the salary of several months.
Frequently Asked Questions about Dollarization and the Economy in Cuba
How does dollarization affect the prices of basic goods in Cuba?
The dollarization has resulted in skyrocketing prices for basic products in Cuba, making many essential items unattainable for the majority of Cubans earning in Cuban pesos. For instance, a piece of beef can cost more than 70 dollars, while the average salary is only 10 dollars a month.
What does the partial dollarization of trade in Cuba imply?
Partial dollarization means that many stores in Cuba now only accept payments in dollars, excluding the use of Cuban pesos and MLC. This has deepened economic inequalities between those who have access to foreign currency and those who rely solely on their earnings in Cuban pesos.
Why is it considered that prices in dollar stores are unaffordable for Cubans?
Prices in stores that accept dollars are regarded as unaffordable because they far exceed the average salary of a Cuban, which is around 10 dollars per month. Products such as diapers or basic food items are priced at levels that do not align with the purchasing power of those who only earn income in Cuban pesos.
What solutions are proposed to tackle inflation and scarcity in Cuba?
Some proposals include promoting structural changes and giving greater prominence to the private sector to combat inflation and encourage national production. However, these solutions depend on broader political and economic changes that the Cuban government must implement.
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