The Cuban regime announced on Wednesday that bank accounts in Freely Convertible Currency (MLC) will continue to operate on the island, even amid the partial dollarization of the nation's economy. Alberto Javier Quiñones, First Vice President of the Central Bank of Cuba, addressed the official program "Mesa Redonda," emphasizing that "MLC accounts held by clients with their banks will not disappear." He further dispelled circulating rumors about the elimination of these accounts, asserting that such claims are "false."
Quiñones assured that "the commitment of banks and their clients to the funds in these accounts is guaranteed." Meanwhile, Mildrey Granadillo, the First Deputy Minister of the Ministry of Economy and Planning, defended the partial dollarization as a "crucial measure to secure resources in the country" and to "ensure the interconnection of various economic sectors."
Recently, the regime inaugurated dollar stores as a strategy to attract foreign currency and sustain the economy during the ongoing crisis. However, this approach has intensified disparities in access to consumer goods, creating a parallel market that marginalizes many citizens. Analysts argue that the coexistence of MLC stores with dollar-based ones highlights the duality of an economy increasingly reliant on foreign exchange.
Understanding Cuba's Economic Changes
What is the significance of MLC accounts in Cuba?
MLC accounts, or accounts in Freely Convertible Currency, play a crucial role in Cuba's economy as they are a means for citizens to hold and transact in foreign currency within the island, which is vital given the country's economic dependencies.
Why is Cuba partially dollarizing its economy?
Cuba is partially dollarizing its economy to attract foreign currency, which is essential for sustaining the economy amidst a severe crisis. This strategy aims to ensure the flow of resources and the integration of various economic sectors.
How has the introduction of dollar stores affected Cuban society?
The introduction of dollar stores has exacerbated inequality in access to consumer goods, leading to a parallel market that excludes many citizens. This has highlighted the economic divide and dependency on foreign currency.