The recently opened supermarket at 3rd and 70th, exclusively selling food and hygiene products in foreign currency, has stirred controversy and discontent across social media. Situated on the premises of the Hotel Gran Muthu Habana—opened in 2023 and managed by MGM Muthu Hotels alongside the military-controlled Gaviota group—this store only accepts cash in dollars or cards linked to foreign currency accounts.
Positioned across from the former "diplotienda" of 3rd and 70th, which later operated in Freely Convertible Currency (MLC), this new supermarket stands out for its well-stocked shelves of both local and imported products. Inside, one can find food items, personal and household cleaning products, and even appliances. However, its limited payment options exclude most Cubans from accessing these goods.
A TikTok video from user cuba.live2 showcased the store's interior, revealing prices such as 250-gram packages of pasta (elbows and spaghetti) priced at USD 1.35. The elbow pasta is branded La Sabrosita, part of the Panamanian supermarket chain Super 99, founded in 1986 by former Panamanian president Ricardo Martinelli. Notably, Martinelli was sentenced in 2023 to over 10 years in prison for money laundering. The origin of the spaghetti packages, wrapped in packaging with Chinese characters, remains unidentified by our editors.
Other products captured in the video include instant soups at USD 1.20, a liter of chicken broth for USD 1.60, small national Ciego Montero sodas at USD 0.65, and Ciego Montero bottled water priced at one dollar (1.5 liters) or USD 2.50 (five liters).
Amid a "partial dollarization" of the economy, Cuban authorities continue selling essential goods in dollars, with prices significantly higher than those in developed capitalist countries. This occurs in a nation where most workers earn salaries in Cuban pesos (CUP), and the minimum wage is 2,100 CUP (approximately 315 CUP equals one dollar on the informal market).
The prices at the 3rd and 70th supermarket are beyond the reach of most Cubans. A 500-gram panettone is priced at USD 15.20, far exceeding the average monthly salary in CUP. Payments can be made in cash dollars, with the Fincimex Classic card, or with a special GAESA financial card that can be recharged from abroad. "Many people are buying thanks to Cubans who have left the country," remarked the creator of another video about the store's opening.
The economic strategists at the Business Administration Group S.A. (GAESA), Gaviota, and Tiendas Caribe continue enforcing a pricing policy at this new establishment that underscores institutionalized exploitation in Cuba. Our investigation found that a bottle of Spanish Ybarra extra virgin olive oil sells for USD 11.25, while in Spain, the same bottle costs €4.84 (about 2.3 times cheaper). The Spanish minimum wage is 1,134 euros, which is 172 times higher than the Cuban minimum wage.
This pricing disparity is evident across all products. For example, Dolce Schiuma liquid soap costs USD 3.55 in Havana, whereas the same product is slightly over one dollar on Amazon. Similarly, a bottle of 10-year-old Ballantine's whiskey, priced at USD 55.00 in Cuba, can be bought for around 15 euros in Europe.
This supermarket vividly illustrates the dollarization of the Cuban economy, where the government prioritizes dollar sales while the people suffer from rampant inflation, increasing shortages, and a rapidly depreciating Cuban peso.
Understanding Cuba's Economic Challenges
Why does the new Havana supermarket only accept dollars?
The supermarket accepts only dollars to cater to those with access to foreign currency, as part of Cuba's partial dollarization strategy, which prioritizes foreign currency transactions over local currency.
How do the prices in the new supermarket compare to other countries?
Prices in the new Havana supermarket are significantly higher than in developed countries, often exceeding prices by more than twice, despite lower local wages.
What is the impact of the dollarization of the Cuban economy?
Dollarization in Cuba exacerbates economic inequality, as it limits access to essential goods for those without foreign currency, while inflation and shortages continue to rise.