Cuba Expands USD Stores While Wages Are Paid in Pesos
There will be over 200 US dollar stores
HAVANA TIMES – At the end of January 2025, Vicente Chiu Vargas, director of communications for the Caribe Stores, stated on Cuban television that dollar stores would not exceed 7% of the locations belonging to that state-run chain. That percentage was estimated to be about 130 outlets that would accept foreign currencies and exclude the magnetic MLC currency.
However, recent reports confirm that, as happened previously with the MLC, dollarization will extend to more stores than initially announced. Yamile Alvarez Tejo, head of the Marketing Department of the Caribe Store chain, told Trabajadores that “around 200 units, 10% of those designated for MLC sales, will offer their goods and services in US dollars.” She noted that over 100 of these stores already exist in tourist areas and facilities, while others have not opened “due to logistical problems.”
According to state media reports, Mildrey Granadillo de la Torre, First Deputy Minister of Economy and Planning, confirmed that there has been an increase in “foreign currency collection” and in the “presence of national products and local suppliers in these outlets.”
The history of measures aimed at raising foreign currency revenues shows that the government has not been transparent about the real scope of dollarization. This occurred when MLC stores were first announced: it was said there would be just a few stores and that certain products would be protected for purchase in Cuban pesos — neither promise was kept.
A similar pattern was seen with gas stations selling fuel in dollars, where it was claimed the peso-based stations wouldn’t be affected.
From CUC to MLC to USD
The stores now being reopened by the Caribe and Cimex chains originally operated in convertible pesos (CUC), later switched to MLC, and are now exclusively in US dollars. The path to “partial dollarization” begins with the “conversion” of outlets selling essential goods and food to extract foreign currency from the population.
One of Cubans’ main frustrations has been the discreet reopening of these outlets: one day it’s closed, and the next, it reopens as a dollar-only store. In addition, as several users told El Toque that some stores keep the exact same products, with only the price tags changed to dollars. Sometimes, they’re restocked with the same inventory as nearby MLC stores.
“Dollarization advances while our salaries and pensions disappear,” a retired woman from Santiago told El Toque, commenting on the rumored upcoming conversion of La California, a store on the downtown Enramadas Street, into a dollar-only outlet.
“It looks like they won’t accept MLC because it’s not listed on the sign at the door showing the accepted cards. Plus, there’s a notice from the management saying the store is preparing to switch to the dollar format.”
The sudden closure of a store — sometimes with a notice, sometimes without — is the main sign of a shift to dollarization. Many of these stores are closed for renovations and then reopen under this “new format.” So far, there is no public information about how many Cimex chain stores (under the Gaesa military conglomeration) will be “converted” to US dollar stores.
First published in Spanish by El Toque and translated and posted in English by Havana Times.
Your absolutely right Stephen Webster. They would be so much better off pricing everything in euros or even cdn dollars. The USA is the highest cost producer and thereby poorest value for your money situation on earth. A great example is a coheba cigar that sells for $95us dollars in Cuba. Much better taste and quality can be had for much less in other countries. At least try to make yourself mildly value competitive with other countries and permit the cuban people to participate in reality global pricing as far from the usa monetary system as possible….again, they’re the highest cost producer on earth today and the poorest value for your money economy….
I can’t believe how the people and government of Cuba emulate the USA and it’s currency. The USA is the highest cost producer and therefore the worst value for your money country in the world today, bar none. Yet the government of Cuba continues to lead Cubans down the golden path to nothingness, never giving Cubans a chance to get ahead economically.
Dollar Store.. It’s a very big joke. I went to the biggest in Havana, next to the big hotel, same things filled in a whole isle. They bring rejected things by the manufacturer, few can foods I bought, not suitable for consumption, some were rotten. Mostly those things are not needed for anyone, just JUNK.
What a bunch of BS the socialist and communist always want to blame the embargó, but they can do business with China, Russia, East Assia, the European Union. The Cuban government doesn’t allow the Cubans on the Island to prosper and their system is a disaster, they don’t pay their bills! That’s why no one wants to do business with them. PERIOD! Canadian dollars, Euros, the Yuan, the Pound can all be exchanged for US dollars. Russia and Iran will sell them oil using those other currency. They are just corrupt and inept and their infrastructure is crumbling.
The US once hated, fought with many countries calling themselves communists, Vietnam, Cambodia, Lais, etc. but like a mad dog, the US teeth is clinging to Cuba’s. neck. Is there some way for Cuba to cry uncle. The Catholic Church, suggested releasing some of the political prisoners, which Cuba complied with.
But Trump’s teeth cling harder and harder.
Accept for Mexico, the rest of the world is just tired of complaining. How sad, how tragic, please protester try to stay involved.
Travelling to Cuba I refuse to buy US dollars when living in Canada, to spend them there, and lose money. I feel for the Cubans, but Cuba is off my list!
Of course wages are paid in pesos, the Cuban Government can not print US dollars.
Cubans want electricity which requires oil that must be paid for in tradable currencies but compete with the government for those currencies.
Remittances are not sent in cash, they are sent electronically, so payment must be made in electronic money, hence the MLC and the black market is taking the tradable currency so something has to be done and if the dollar or MLC stores allowed you to pay with pesos they wouldn’t be able to restock the shelves, everything in these stores is bought off island and paid for in cash because of US restrictions on Cuba.
Need to look at a different currency than the U S dollar for Cuba to use China Mexico or Canada are all better choices
Finally! You showed a picture of the real situation. Stores are full of food with all kinds of products. And this is only the beginning of Cuban restoration to glory. Miami-Cubans dislike that and hence the daily propaganda but Cubans will prevail.
The dictatorship think the exile is responsible to feeding their families but the exile doesn’t have any rights, the exile must ask the owner of the plantation if they can visit their families on the plantation and the owners of the plantation decide who is able to visit. If you denounce the plantation you not longer welcome. But the regime wants your US Dollars to stay in power and run the plantation. Useless, shameless dictatorship.
Does the Castro regime have any shame? At the very same moment that they decry the government of the United States and capitalism, in general, they expand their whoring to collect US dollars. They pleaded with the members of BRICS to be added to the group as an associate member and just today, at the CELAC confab promoted alternatives to the use of the US dollar. Yet, in the background, continue to bend over to attract US currency. Is there no shame?