Unusual Criticism in the Cuban Press Against Dollarization
It’s “a virus,” says the Guantanamo newspaper
An official Cuban newspaper laments the loss of value of the MLC and its replacement by the “empire’s” currency.
HAVANA TIMES – The official newspaper Venceremos, the Communist Party organ in Guananamo, has described the phenomenon of dollarization in an unusually critical tone. The article emphasizes the gradual disappearance of stores selling in the magnetic MLC currency, as well as the growing role of bank cards, especially the “Classic” card, which allow purchases in dollars without lines or hassles. Some interpret this change as the prelude to a larger transformation.
What the official newspaper calls “a virus” spread to the rest of the country from Havana. The emblematic 3rd and 70th market in the capital began accepting US bills, and almost immediately MLC stores began showing more shortages than usual, while relatively well-stocked establishments emerged that operated only in physical dollars and with the new cards.
The informal currency market, always sensitive to signals, reacted quickly. The gap between the virtual “MLC currency” and the physical dollar widened into an abyss. On the street, a cash dollar is worth much more than an electronic MLC.
Venceremos’ account comes somewhat late to a problem that independent media have dissected many times. First comes the discounts on nonperishable goods; then, a temporary closure with a “maintenance” sign and some cosmetic touch-ups; finally, reopening as a dollar store. Inside, the vendors confirm what official channels haven’t said: the merchandise is liquidated and, once the inventory is exhausted, the establishment reopens operating exclusively in USD cash.
For those who still keep savings in MLC or receive payments in that virtual currency, the situation is discouraging. The supply is limited to items with little demand, which many rush to buy so as not to lose everything. The feeling of defenselessness grows, along with the perception that the MLC is doomed to disappear.
On the street, the issue is one of the most discussed topics. It’s talked about in lines, on public transport, and on social media. However, at the official level, silence prevails. The Venceremos piece criticizes—without naming them—the officials in charge of communication policy, pointing out that the people do not receive clear or timely explanations about processes that directly affect them.
The only recent official reaction came from the Central Bank of Cuba, which denied a rumor about the imminent disappearance of the virtual MLC currency. The speculation had circulated after maintenance work on the country’s main payment platform. In a brief statement, the entity assured that MLC operations would continue, that the interruptions were part of routine technical work, and urged the public to get their information through official channels.
The denial did not ease concerns. As Venceremos points out, it’s hard to blame the population for believing rumors when truthful and timely information is scarce. Moreover, the episode highlighted a missed opportunity to address reality head-on. In three decades, the Cuban regime has created and eliminated the CUC, allowed and banned physical dollars, introduced and restricted virtual currencies, and is now turning the “empire’s” currency into the only valid national currency on the Island, while condemning the MLC to irrelevance—all amid the sustained devaluation of the Cuban peso and the unstoppable rise of the dollar, which this Sunday is nearing 400 pesos.
The historical recap given by the Guantanamo paper—unusual for a Party organ—outlines a repetitive cycle. A “solution” is introduced, presented as stable, later, its use is limited, it’s devalued, and finally replaced by another. The MLC, born as the digital equivalent of the dollar and with the promise of stability, is now being displaced by direct transactions in physical currency.
In Guantánamo—as in the rest of the Island—each new store closure is interpreted as another step toward total dollarization. Consumers prepare by exchanging MLC for dollars in the informal market at very unfavorable rates and prioritizing spending their virtual balances before they lose more value. The general expectation is that, sooner rather than later, the MLC will be history.
The Venceremos article stops short of speaking out against that possible transition, but its tone and structure say it all. The use of expressions like “last rites” or “life support” to describe the virtual currency breaks with the usual triumphalist government rhetoric and suggests that, in the provincial official press, some journalists are tired of inventing fictitious progress or keeping quiet in the face of a reality that, like everyone else, is also blowing up in their faces.
First published in Spanish by 14ymedio and translated and posted in English by Havana Times.