Cuba is witnessing a significant shift in its retail landscape as the military conglomerate Gaesa plans to open U.S. dollar stores across all 15 provinces, starting with the capitals. This initiative follows the success of two supermarkets in Havana that exclusively accept dollars, reflecting the government's ongoing efforts to address the economic crisis through dollarisation. Approximately 7% of Cimex and Tiendas Caribe stores will adopt this dollar-only model, which aims to provide a more stable shopping environment for consumers amidst rampant inflation and food shortages [6473231b].
The introduction of these dollar stores comes at a time when the Cuban economy is facing severe challenges, including blackouts, food scarcity, and a pressing need for cash. While the government emphasizes that the Cuban peso remains central to the economy, the reality on the ground shows a growing reliance on U.S. dollars for transactions. Customers at these stores may even receive change in candy due to a shortage of coins, highlighting the complexities of the current monetary system [6473231b].
The Central Bank of Cuba continues to maintain accounts in foreign currencies, known as MLC accounts, but these accounts are not permitted for use in the new dollar stores. This restriction underscores the government's cautious approach to dollarisation, as officials aim to reduce the fiscal deficit by over 39% while navigating the intricacies of international relations and domestic economic pressures [6473231b].
In addition to cash transactions, electronic payments are being promoted, although cash remains the preferred method for many consumers. The government is also exploring partnerships with foreign investors to enhance the supply of goods in these dollar stores, indicating a potential shift in economic strategy as Cuba seeks to stabilize its economy [6473231b].
As the situation evolves, the need for dollars in Cuba is more pressing than ever, with the government attempting to balance the complexities of dollarisation and its impact on the population's access to essential goods [9218e17e].