Cuban Armed Forces to Launch Dollar-Based Stores Nationwide

Expansion of Dollar Transactions in Cuba: A New Era?

The Cuban economy seems to be caught in quite the pickle. It’s steering into a new era marked by an expansion of dollar transactions. But what does this mean for your everyday Cuban resident?

A Bold Move Towards Dollarization

The military conglomerate Gaesa has set its sights on a bold move. They’re looking to expand their dollar-only sales across Tiendas Caribe and Cimex. By golly, what prompted this was the success of the 3rd and 70th supermarket in Havana, which has only been open for a short period. This establishment, located on the lower level of the grand Gran Muthu Havana hotel, only accepts payments in US dollars, whether by card or cash source. It’s quite remarkable, indeed!

The Payment Dilemma: Preference for Cash

Now, it might seem a bit daft, but this venture has not gone entirely without a hitch. Many customers maintain a strong preference for cash—surely not a surprise given the lack of electronic alternatives. As mirrors head of commercial department, Yamile Alvarez Tejo, this preference often aggravates situations at the tills. Imagine, if you will, that one must endure the operational stress due to validating a plethora of $100 bills. Quite a pickle that!

Tackling a Currency Controversy

It’s worth mentioning that this initiative raises several eyebrows. The peso, surprisingly, remains the cornerstone of the Cuban financial system, despite soaring dollar transactions. According to Deputy Minister Mildrey Granadillo de la Torre, this stratagem is merely temporary, covering no more than 7% of all Cimex and Tiendas Caribe establishments. Now, that’s a curious thing to state given the robust expansion plans.

Further complicating matters is the Magnetic Liquidity Currency (MLC), once thought to fade into obscurity, yet steadfastly holding station. It bewilders many a Cuban that MLC payments aren’t accepted in the new dollar shops source, especially when backed by foreign cash.

The Foreign Currency Debacle

Returning change to customers has turned into quite the caper. Due to a lack of coins, it turns out that some unsuspecting customers are handed candy instead. Oh, what a to-do! It takes us back to a time when the Cuban Convertible Peso (CUC) saw the light of day, and such issues were nonexistent. The official narrative encourages digital payments to ease the burden on cash registers and bill validation operations.

Strategically Expanding

Yet, beneath this veil of confusion, lies a calculated strategy to elevate the economy by boosting exports and foreign partnerships. Last year, financing was injected into nine suppliers, and expectations are set to introduce another ten this year. Such resourcefulness! These collaborations with foreign investors promise quick returns on investments and a stronger financial backbone.

The Road Ahead: A Slow Dance Towards De-dollarization

Fascinatingly, dollarization may be merely a precursor to de-dollarization. The Prime Minister’s remarks resonate with a need to tread this path before entirely phasing out dollar dependency. Recall that Alejandro Gil, now entangled in legal strife over corruption allegations, echoed a similar sentiment back in 2020.

So, there you have it—an intricate tale of commerce, currency, and innovation weaving its way through Cuba’s economic fabric. To indulge further on this adventure, pop over to Havana Times for more riveting insights. Cheerio!