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New Store in Havana Drops MLC Payments: "To Serve You Better Than Ever"

Friday, February 14, 2025 by Isabella Rojas

New Store in Havana Drops MLC Payments: "To Serve You Better Than Ever"
Infanta and Santa Marta Market - Image by © Facebook/Division Havana West

This Thursday, the Cuban regime reopened the doors of the Infanta and Santa Marta Market in Havana, offering a wide array of food products, frozen goods, beverages, and personal care items. However, a major shift has been made in its payment system: it no longer accepts Freely Convertible Currency (MLC). While MLC transactions were previously allowed, payments are now limited to VISA, MasterCard, MIR cards, and prepaid cards issued by BANDEC, AIS, Viajero, and Clásica. The latter offers a 5% purchase discount, according to a Facebook post by Tiendas CARIBE's Havana West Division.

In collaboration with the company Vima, the store vows to "serve better than ever" its patrons. Nevertheless, the change has sparked frustration among customers. Although MLC cards are topped up from abroad, they are no longer valid in this establishment, underscoring the perceived arbitrariness of the Cuban government's economic policies.

The Dollar-Only Supermarket at 3rd and 70

It is important to recall that in January, the "3rd and 70" supermarket in Playa was inaugurated, exclusively accepting U.S. dollars. This market features a variety of products and high prices that exceed the average worker's salary, highlighting the inequality and dollarization present in Cuba.

In addition to these locations, the regime has sanctioned more than a dozen wholesale and retail businesses in foreign currency, eight of which are linked to the MINCIN business system. As the government desperately seeks foreign currency through these ventures, the population continues to struggle to obtain basic goods with the national currency.

The Ascendancy of the Dollar

In December, the Cuban government approved a document regulating the "partial dollarization of the economy," as announced by Prime Minister Manuel Marrero Cruz during the fourth ordinary session of the National Assembly. This measure, which underscores the growing influence of the U.S. dollar in the country, aims—once again—to reorganize key economic sectors while attempting to manage the impact of the informal exchange market.

The partial dollarization plan encompasses the following sectors: previously approved wholesale and retail trade in foreign currencies; and the payment of tariffs and services related to foreign trade for non-state management forms. Moreover, cash in dollars is accepted in strategic sectors such as tourism, Casas del Habano, pharmacies, optical stores, international clinics, and airports. There are also foreign currency payments to agricultural producers who replace imports and to those who manufacture exportable goods.

According to the regime, this regulation is also intended to allow greater flexibility in the use of foreign currency for specific economic activities, such as tourism and foreign trade, which are crucial for generating income during the ongoing economic crisis.

Understanding Cuba's Economic Shifts

What is the new payment system at the Infanta and Santa Marta Market?

The market now only accepts payments through VISA, MasterCard, MIR cards, and prepaid cards issued by BANDEC, AIS, Viajero, and Clásica, with a 5% discount on purchases made with the Clásica card.

Why has the Cuban government shifted towards dollarization?

The shift towards dollarization is aimed at reorganizing key economic sectors and managing the informal exchange market's impact, reflecting the increasing influence of the U.S. dollar in Cuba.

How does the 3rd and 70 supermarket reflect inequality in Cuba?

The supermarket only accepts U.S. dollars and offers products at prices that exceed the average worker's salary, underscoring the inequality and dollarization in the country.

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