A recent social media revelation has once again highlighted the harsh reality of Cuba's growing reliance on the dollar. Cuban influencer Kary Sánchez, known online as @kary_y_jony, captured a video during her visit to a dollar store in Guantánamo, where a single piece of beef is priced at over $70. “Cubans can't afford this,” she remarked, illustrating the deep frustration over exorbitant prices in a nation where the monthly average salary is around $10.
The video, shared on TikTok, shows shelves stocked with repetitive items, nearly empty refrigerators, and essential goods with staggering price tags. Disposable diapers, for instance, were priced at approximately $10. Even stores using the MLC (Freely Convertible Currency), which are ostensibly intended to ease shortages, are characterized by limited variety and high costs, as Sánchez pointed out.
The Pervasive Dollarization
"Dollarization has swept across the island," Sánchez stated, commenting on the severe economic inequality fostered by this trade model. During her visit, she placed a label reading “The Cuban” on a trash bin, a visual metaphor for the economic neglect faced by most of the population.
Comments on her post drew parallels with the Venezuelan crisis, while others called for structural changes and increased involvement of the private sector to combat inflation and boost national production.
Citizen Testimonies Reveal Hardships
This report adds to a growing number of citizen accounts shedding light on the difficulty of obtaining basic goods without foreign currency. In a previous video, the same content creator demonstrated that with $10, she could only purchase powdered milk, cookies, and mayonnaise in Havana. Similar experiences have been shared by Cubans living abroad, such as a young woman in Mexico who managed to buy only a handful of items with $23 at a foreign currency store.
Escalating Retail Dollarization
The trend of retail dollarization is increasing in Cuba, with at least 85 stores now operating solely in USD. Many of these establishments have been converted without prior notice, causing discontent among the populace. The government has officially acknowledged this "partial dollarization," with new openings like the wholesale Caribe Mariel, where neither Cuban pesos nor MLC are accepted—only USD.
Economists, including Pedro Monreal, have cautioned that this model fails to ensure stable supplies or production and worsens the disparity between those with access to foreign currency and those reliant solely on peso incomes. In regions like Holguín, residents have also reported "outrageously expensive" prices and a lack of essential products.
As more stores accept only dollars and offer better stock, millions of Cubans face the daily challenge of buying food at international prices with salaries paid in Cuban pesos, which are increasingly inadequate. In such conditions, purchasing a cut of beef could cost several months' wages.
Understanding Cuba's Dollarization Impact
Why are dollar store prices in Cuba so high?
Prices in Cuban dollar stores are high due to reliance on foreign currency and limited access to goods, exacerbated by economic policies and the lack of local production.
What is the impact of dollarization on Cuban citizens?
Dollarization deepens economic inequality, making it difficult for those without access to foreign currency to afford basic goods, and increases the cost of living in relation to the average Cuban salary.
How are Cubans coping with high prices?
Many Cubans struggle to make ends meet, often relying on remittances from abroad, informal markets, or bartering to access necessary goods.