In Santa Clara's Capiro neighborhood, a self-employed worker faced penalties for denying customers the option to pay through the country's established digital gateways and for selling goods in U.S. dollars, a practice unauthorized for non-state-managed businesses. Ester Lilia Molerio Sáez, head of Inspection in Villa Clara's provincial capital, revealed to the state-run CMHW broadcaster that the offender also violated Resolution 111 of 2023 from the Central Bank of Cuba and the Ministry of Domestic Trade (MINCIN) mandates regarding the mandatory use of a fiscal account for transactions.
These violations fall under Decree Law 91 of 2024, which led to the imposition of a corresponding fine. Additionally, other irregularities surfaced during a Price Control Exercise involving 301 professional and temporary inspectors. In the same district, four individuals were found conducting economic activities without the required authorization and were each fined 16,000 pesos.
In another enforcement move, Santa Clara inspectors discovered a truck transporting goods with invalid documentation. The responsible party was fined 36,000 pesos according to Decree Law 91, and the cargo was confiscated.
While the penalty against the private worker for dollar sales and bypassing digital payment aims to curb abuses, it highlights contradictions in the Cuban economic policy. Although authorities bar private entrepreneurs from conducting USD transactions, the government itself has opened stores operating exclusively in this currency. A notable example is the supermarket at 3ra y 70 in Havana, which only accepts cash in dollars or cards linked to foreign currency accounts, drawing criticism for excluding those without access to this currency.
This partial "dollarization" of the economy is defended by the government as a necessary step to attract foreign currency and manage its flow. However, economists like Pedro Monreal argue that this strategy exacerbates economic distortions instead of addressing them, hindering monetary policy effectiveness and increasing the risk of a liquidity crisis.
Moreover, the opening of these dollar-only stores has worsened social inequalities, creating a dual market where only those with access to foreign currency can purchase certain goods, leaving the majority who earn in Cuban pesos excluded. The situation becomes more complex when private workers are penalized for practices that, while against current regulations, reflect an adaptation to the economic policies implemented by the government itself.
Understanding Cuba's Economic Policies and Their Impacts
Why are private workers in Cuba penalized for dollar transactions?
Private workers are fined for dollar transactions because it is unauthorized for non-state businesses to conduct operations in U.S. dollars, according to Cuban regulations. This is intended to control the flow of foreign currency within the country.
What contradictions exist in Cuba's economic policies?
Cuba's economic policies present contradictions as private entrepreneurs are prohibited from dollar transactions, while government-operated stores exclusively accept this currency. This creates a disparity and exclusion for those without access to dollars.
How does partial dollarization affect Cuban society?
Partial dollarization leads to increased social inequalities by establishing a dual market. Only individuals with access to foreign currency can access certain goods, excluding the majority who earn in Cuban pesos.