Cuba Expands USD Stores While Wages Are Paid in Pesos

At the end of January 2025, Vicente Chiu Vargas, director of communications for the Caribe Stores, stated on Cuban television that dollar stores would not exceed 7% of the locations belonging to that state-run chain. That percentage was estimated to be about 130 outlets that would accept foreign currencies and exclude the magnetic MLC currency.

However, recent reports confirm that, as happened previously with the MLC, dollarization will extend to more stores than initially announced. Yamile Alvarez Tejo, head of the Marketing Department of the Caribe Store chain, told Trabajadores that “around 200 units, 10% of those designated for MLC sales, will offer their goods and services in US dollars.” She noted that over 100 of these stores already exist in tourist areas and facilities, while others have not opened “due to logistical problems.”

According to state media reports, Mildrey Granadillo de la Torre, First Deputy Minister of Economy and Planning, confirmed that there has been an increase in “foreign currency collection” and in the “presence of national products and local suppliers in these outlets.”

The history of measures aimed at raising foreign currency revenues shows that the government has not been transparent about the real scope of dollarization. This occurred when MLC stores were first announced: it was said there would be just a few stores and that certain products would be protected for purchase in Cuban pesos — neither promise was kept.

A similar pattern was seen with gas stations selling fuel in dollars, where it was claimed the peso-based stations wouldn’t be affected.

From CUC to MLC to USD

The stores now being reopened by the Caribe and Cimex chains originally operated in convertible pesos (CUC), later switched to MLC, and are now exclusively in US dollars. The path to “partial dollarization” begins with the “conversion” of outlets selling essential goods and food to extract foreign currency from the population.

One of Cubans’ main frustrations has been the discreet reopening of these outlets: one day it’s closed, and the next, it reopens as a dollar-only store. In addition, as several users told El Toque that  some stores keep the exact same products, with only the price tags changed to dollars. Sometimes, they’re restocked with the same inventory as nearby MLC stores.

“Dollarization advances while our salaries and pensions disappear,” a retired woman from Santiago told El Toque, commenting on the rumored upcoming conversion of La California, a store on the downtown Enramadas Street, into a dollar-only outlet.

“It looks like they won’t accept MLC because it’s not listed on the sign at the door showing the accepted cards. Plus, there’s a notice from the management saying the store is preparing to switch to the dollar format.”

The sudden closure of a store — sometimes with a notice, sometimes without — is the main sign of a shift to dollarization. Many of these stores are closed for renovations and then reopen under this “new format.” So far, there is no public information about how many Cimex chain stores (under the Gaesa military conglomeration) will be “converted” to US dollar stores.

This article was translated into English from the original in Spanish.