On Wednesday, Cuban Prime Minister Manuel Marrero Cruz addressed the National Assembly of People's Power, revealing plans to launch a new "mechanism for managing, controlling, and allocating foreign currency" in the latter half of 2025. This initiative is part of the so-called "Government Program to correct distortions and reinvigorate the economy." According to Marrero, this updated model aims to overhaul the official currency exchange market, streamline financing frameworks, and supposedly enhance the efficient distribution of foreign currency generated by state-run enterprises.
However, what Marrero did not disclose is that this "transformation" marks the third attempt in as many years. The previous two initiatives were spearheaded by former Minister Alejandro Gil Fernández, who was ousted in February 2024 amid corruption allegations.
Marrero promises genuine change this time, assuring that entities will directly receive the foreign currency they generate, potentially boosting product availability. Yet, the Cuban public has heard similar assurances before. In 2022, when the "grounded" buying and selling of currency was announced, in 2023, when the collapse of Cadecas and 100-day queues for exchanging $100 were acknowledged, and in 2024, during talks of "flexibility" in the exchange rate amidst a thinly veiled dollarization.
As of 2025, the informal market still dictates terms, the Cuban peso remains virtually worthless, and remittances from emigrants are a lifeline for countless households.
The Downfall of the Change Architect
Alejandro Gil was the architect behind the currency market established in 2022 and the new regime of 2024, both touted as "structural" solutions to capture foreign currency and curb the informal market. Each attempt resulted in an inefficient, restrictive, and deeply unequal system.
Gil was removed from his position in February 2024 amidst political turmoil after publicly acknowledging the failure of the Tarea Ordenamiento, declining food production, inability to replace imports, and uncontrollable inflation. His successor, Joaquín Alonso Vázquez, now leads monetary strategy, albeit with no visible results yet.
As the regime sidelined him, Gil stated on television that "life is tough," but the only way forward was "revolution and socialism." For many Cubans, this phrase became emblematic of institutional cynicism.
Focus on State Enterprises
The "new phase" of the currency exchange market appears once again to prioritize state enterprises and sectors without clarifying how citizens will access foreign currency. Meanwhile, Cubans remain forced to purchase dollars on the street to buy food, medication, or pay for migration paperwork in an economy where everything costs more in MLC.
Experts have long warned that any attempt to reorganize the currency system without an inclusive policy will only deepen inequality. Without real access to foreign currency, the population is trapped in a parallel economy that punishes the most vulnerable.
Instead of de-dollarizing, as the official rhetoric claims, the reality shows that Cuba is more dollarized than ever, and the Cuban peso continues to lose purchasing power day by day.
With this latest announcement, the government once again asks for patience and trust. But after so many failures, Cubans demand results, not promises.
Cuba's Economic Challenges and Currency Market
What changes are expected in Cuba's currency exchange market in 2025?
The Cuban government plans to introduce a new mechanism for managing, controlling, and allocating foreign currency, aiming to overhaul the official currency exchange market and improve the distribution of foreign currency generated by state enterprises.
Who was Alejandro Gil Fernández in Cuba's economic policy?
Alejandro Gil Fernández was the former Minister responsible for previous currency market changes in 2022 and 2024, both of which were ultimately unsuccessful. He was removed from his position in 2024 amid allegations of corruption.
Why are Cubans skeptical about the new economic reforms?
Cubans remain skeptical due to repeated promises of economic reform that have failed to deliver tangible results. Previous initiatives have been criticized for being inefficient and failing to address the needs of the general population.