Recent declarations by the Cuban government regarding the continuation of Moneda Libremente Convertible (MLC) accounts have sparked widespread anger among the populace. Many citizens voiced their dissatisfaction on social media, highlighting how the island's financial system denies them real access to U.S. dollars deposited in banks and converted into MLC, while the government opens stores that accept only foreign currency.
Government promises about the validity of digital currency lack credibility for many, who observe that MLC stores are often empty, unlike those accepting dollars. Alberto Javier Quiñones, First Vice President of the Central Bank of Cuba, appeared on the official Mesa Redonda program to reassure that "the MLC accounts that customers have with their banks today will not disappear" and dismissed rumors of their elimination as "false." He also stated that "the banks' commitment to their clients and their funds is guaranteed." However, Cubans remain skeptical and frustrated, believing the government is trapping MLC accounts in a financial limbo.
Discontent Rises on Social Media
Citizens have expressed that, despite having MLC funds backed by dollars and euros, they are unable to use them in new USD-only stores. This situation has sparked numerous criticisms and confusion about access to essential goods. One social media user remarked, "They never explained why that MLC card, which is also backed by USD, can't be used in those stores if the government controls all that money in Cuba."
Another Cuban criticized the lack of transparency in the banking system: "Why can't my MLC card, backed by USD deposited outside Cuba, be used in dollar stores? How will they stock two types of stores if there's not enough for one?"
The confusion and anger are evident in statements like the following: "They want to drive us crazy. Family sends euros or dollars, they reach the card and along the way turn into MLC. Then you go to the store and it's empty, nothing in MLC, but there are new USD stores. You go with your MLC card, supposedly dollars, and they don't accept it. You need a Classic card. Go to the bank and ask to transfer your euros or dollars to the Classic, they say no, those are MLC. With much hassle, you buy dollars with MLC and put money in the Classic, losing a lot in the process. Finally, you get to the store and with the prices, you can only afford a bottle of oil and an apple. Change? Some candies. You get home, your wife asks if that's all you bought with the MLC you had. You give her a candy, a kiss, and call Mazorra to see if there's room for one more."
Growing Distrust in Cuba's Financial System
Critics not only focus on currency conversion but also on the lack of trust in Cuba's banking system. A user wrote: "But no one asked if they disappear. People ask WHY you can't shop with that card in new stores if MLC is cash deposited in the bank. Where is that money? Can MLC be withdrawn in cash to shop in those stores? What they just published answers nothing. Cuban banks aren't trustworthy. Anyone saving there for emergencies is crazy—it’s a scam. Once trust is broken, it's hard to rebuild. You broke it, ground it to dust, and used it as fertilizer."
Another citizen questioned the inequality in accessing essential goods: "Fincimex, explain how a minimum wage worker earning 2,200 pesos can buy anything in these dollar stores, where most food and necessities are. What is being done so everyone can enjoy these benefits? The average Cuban can't even dream of it. They were supposed to stock national currency stores with those funds, and that never happened. They've taken everything away. Nothing comes anymore."
Partial Dollarization and Social Exclusion
The government has defended partial dollarization as an "important measure to secure resources in the country" and to "ensure the linkage of economic sectors," stated Mildrey Granadillo, First Deputy Minister of the Ministry of Economy and Planning. However, most citizens view this as a method of exclusion, where only those with access to dollars can purchase basic goods. The coexistence of MLC and dollar stores has only deepened the crisis of trust in Cuba's financial system.
While the regime insists that MLC accounts will remain, citizens question the purpose of maintaining a balance in a currency that doesn't allow access to essential goods. The outrage grows, and "trust in the Cuban financial system is permanently broken."
Key Questions on Cuba's MLC Currency Controversy
Why are Cubans upset about the MLC accounts?
Cubans are frustrated because they can't access their MLC funds in new dollar-only stores, despite these funds being backed by dollars and euros. The situation has led to widespread criticism and confusion.
What is the government's stance on MLC accounts?
The government claims that MLC accounts will not disappear and assures that the banks are committed to their clients' funds. However, many Cubans remain skeptical of these promises.
How has the dollarization affected the Cuban economy?
The partial dollarization has been presented as a measure to secure resources, but many Cubans see it as a form of exclusion, benefiting only those with access to dollars, which has deepened distrust in the financial system.