The recent sharp decline in the value of the dollar on Cuba's informal market has sparked surprising reactions among private businesses, leading to unforeseen changes in their operations.
Despite regulations prohibiting small and medium-sized enterprises (Mipymes) from accepting foreign currency directly, many bypass these restrictions to secure inventory since they require dollars or euros for importing goods or purchasing wholesale on the black market. However, in recent days, several businesses have reportedly stopped accepting physical U.S. dollars just as their value drops.
On social media, numerous users have reported that for the past three days, many Mipymes have refused to accept U.S. dollars, even for minor transactions. The situation gained significant attention when lawyer and activist Manuel Viera shared his experience on social media, describing his attempt to purchase a pack of chicken with a $10 bill, only to be declined by multiple vendors.
"I don't understand," wrote Viera. "If a 10-pound package costs $10, why can't I pay with $10?" He suggested that merchants are acting on speculative impulses: "They want to gain a few extra pesos from tomorrow's exchange rate, even if it means losing sales today."
In a follow-up message, Viera criticized the short-sightedness of those rejecting foreign currency, arguing they are effectively handing their clients over to the state, which operates dollarized stores. "Once the government has enough dollars to import, they’ll sweep the market," he warned.
A Widespread Reaction
Complaints are surfacing nationwide. "It's not just a few... it's a lot," commented one user in the original thread. "This has been happening for the past three days in numerous private establishments."
Another comment summarized the paradox: "They don't want to sell in dollars, but they're buying them at 420."
Adding to public frustration is the legal confusion: private businesses are not allowed to operate in foreign currency, yet most do so informally as the Cuban peso is inadequate for restocking supplies.
When exchange rates fall, business owners tend to hold onto their products, waiting for a rate increase before selling.
Speculation and Fear
Economists suggest that this behavior is driven by a mix of caution, opportunism, and lack of business training. Many of these enterprises are merely resellers, lacking strategy or reserve capital, and adjust prices with every fluctuation of the dollar, but only in ways that benefit them.
There are also suggestions of implicit coordination among major private importers to temporarily lower exchange rates and buy cheaper currency before another increase.
Rising Discontent
Consumer reactions reveal growing anger and distrust. "When the dollar goes up, prices rise; when it goes down, they don't," a reader noted. "There are no real merchants here anymore, just wheeler-dealers."
Amid the currency's decline and constant price hikes, the general perception is that Cuba's private market mirrors the state-run one: lacking transparency, real competition, and empathy.
"The dollar drops, but life stays the same," encapsulates one comment. "And in Cuba, that's no longer surprising."
Understanding Cuba's Currency Dilemma
Why are Cuban private businesses refusing to accept dollars?
Cuban private businesses are reportedly rejecting dollars due to the recent decline in their value, preferring to wait for a more favorable exchange rate before accepting them for transactions.
How is the Cuban government involved in the currency issue?
The Cuban government maintains dollarized stores and could potentially sweep the market if they secure enough dollars for importing, impacting private businesses that rely on informal currency transactions.
What are the legal challenges facing Cuban private businesses?
Legally, Cuban private businesses cannot operate in foreign currency, but many do so informally because the Cuban peso is insufficient for obtaining necessary supplies.