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Cubans Face New Restriction in State Stores: "No MLC Accepted, Only Dollars or Cards"

Wednesday, January 1, 2025 by James Rodriguez

Cubans Face New Restriction in State Stores: "No MLC Accepted, Only Dollars or Cards"
Store in MLC (Reference Image) - Image by © Cadena de Tiendas CARIBE / Facebook

Otto Ortiz, a well-known Cuban comedian, has taken to social media to criticize what he sees as an unfair government policy to kick off the year: the refusal of certain stores to accept payments in MLC (Freely Convertible Currency). On Facebook, Ortiz voiced his discontent: "The first of 2025: there are stores where you can't pay with MLC, only with Clásica, Visa, Mastercard, or cash in dollars."

The "unexpected measure" prompted the comedian to question on his social media: "My question is: aren't MLC dollars that we give to the state? So, what do we do with them? Can private businesses also choose to be paid only in those currencies?"

Although Ortiz did not specify which foreign currency-collecting stores are operating under this policy, in the comments section, Humberto McClarin Barrios shared: "The same happened to my parents yesterday at the new Súper Mercado de 70, opened at the Gran Muthu hotel. What a lack of respect! Now we can't shop with MLC in those stores either, so tell me, where are we going to end up?"

Omar Milanés also recounted a similar incident: "My wife carried the products to the checkout. You should have seen her face. It turns out that, with fuel being sold in USD, everything else got 'contaminated'."

A person by the name of Asowuano Kmvv shared their experience: "Well, Otto, it won't be the first of 2025. It happened to me here on the key today. I went to pay in the store, and they hit me with that: dollars, Visa, or MasterCard, and I asked myself the same question: and what about the MLC, why did I deposit dollars? The new year starts off hot."

However, in truth, the measure isn't as "surprising" as it might seem. The Cuban government has approved a document regulating the "partial dollarization of the economy," as announced by Prime Minister Manuel Marrero Cruz during the fourth ordinary session of the National Assembly.

This policy, reflecting the rising influence of the US dollar in the nation, aims to reorganize key economic sectors while attempting to manage the impact of the informal exchange market. The partial dollarization scheme will encompass the following sectors: wholesale and retail trade in previously approved currencies; and the payment of tariffs and services related to foreign trade for non-state management forms.

Moreover, cash payments in dollars will be accepted in strategic sectors, such as tourism, Casas del Habano, pharmacies, optical stores, international clinics, and airports; additionally, there will be payments in foreign currencies to agricultural producers who replace imports and to those who manufacture exportable goods.

According to the regime, this regulation will also allow greater flexibility in the use of currencies for specific economic activities, such as tourism and foreign trade, which are key sectors for generating income amid the economic crisis.

Understanding the Impact of Cuba's Partial Dollarization

What is MLC, and why is it no longer accepted in some Cuban stores?

MLC stands for Freely Convertible Currency, used in Cuba for transactions in state stores. Recent measures have restricted its use, allowing only cash in dollars or payments via specific credit cards.

How will the partial dollarization affect Cuba's economy?

The partial dollarization seeks to reorganize key economic sectors and manage the informal exchange market's impact, allowing for dollar transactions in strategic areas to stabilize the economy.

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