In a fresh bid to attract foreign currency, a report from the state-run television program Mesa Redonda revealed that a new store will soon open at the intersection of 23rd and C Streets in Havana. This store will focus on selling a variety of products in dollars, aligning with a broader strategy by the Ministry of Domestic Trade (MINCIN) aimed at bolstering foreign currency commerce amidst a shortage of goods available in the national currency.
The store will feature both domestic products from state-owned entities and private sector micro, small, and medium-sized enterprises (MSMEs). Currently operating as a wholesale service, the store will eventually allow direct purchases by the public using dollar (USD) cards. In the future, cash payments are expected to be incorporated, in line with the legal framework governing foreign investment in the country.
To date, ten contracts have been secured with local producers, including five with private businesses, alongside imported goods supplies. As part of the marketing strategy, employees are undergoing training to enhance customer service, offering guidance on product locations, prices, and features.
Joining this new store in Havana is the joint venture Alma Caribe SA, which focuses on both wholesale and retail distribution of food and non-food items, whether local or imported. Sonia Rivero Batista, the Cuban manager of the company, announced plans to open 15 stores in Havana, with future expansion to 50 stores nationwide, including 48 new builds. An online commerce platform is also in development to facilitate access to these products.
The MINCIN has justified this approach by arguing that the supply in national currency is insufficient due to reduced production and a lack of liquidity for importing goods. According to Deputy Minister Aracelys Cardoso Hernández, the wholesale trade in foreign currency aims to ensure the supply of raw materials and essential goods like food and hygiene products.
In addition to Alma Caribe, the government has approved 15 wholesale and retail businesses trading in foreign currency, eight of which are linked to the business system of MINCIN. Another key player in this process is Mercalhabana SA, whose vice president, Yaimara Pérez Barrera, stated that the company will handle imports and exports to supply the wholesale channel and participate as a shareholder in foreign investments. However, Pérez Barrera acknowledged that current infrastructure lacks technological sophistication, necessitating equipment modernization and facility upgrades.
The Shift from MLC to Exclusive Dollar Stores
Since 2019, Cuba's government has introduced stores trading in Freely Convertible Currency (MLC) as a means to acquire foreign capital and address economic crises and shortages of essential products. These stores allow purchases via cards linked to foreign currency accounts, excluding the Cuban peso (CUP) and convertible peso (CUC).
Recently, the government has expanded this model, opening locations that accept only US dollars, either in cash or through cards linked to foreign currency accounts. For instance, in January 2025, a supermarket was inaugurated at the intersection of 3rd and 70th Streets in Havana, accepting only dollars and offering a wide range of both local and international products.
This strategy has faced criticism due to its impact on economic inequality, as many Cubans lack access to foreign currency, thereby limiting their access to basic goods. While these dollar stores are well-stocked, those operating in MLC or CUP often suffer from shortages, exacerbating perceptions of inequity.
Recently, some MLC stores have started accepting cash payments in foreign currency, a move not yet implemented network-wide but anticipated to expand in the coming months. This partial dollarization underscores the growing inequalities and challenges faced by the Cuban populace in their daily lives.
Understanding Cuba's Dollarization Strategy
Why is Cuba opening stores that trade only in dollars?
Cuba is opening stores that trade only in dollars to attract foreign currency, which is crucial for the country's economy given the shortage of goods available in the national currency.
What challenges does this new economic strategy pose for Cubans?
This strategy deepens economic inequality as many Cubans do not have access to foreign currency, limiting their ability to purchase basic goods and exacerbating existing disparities.