As of 2025, the Cuban government has confirmed that bank accounts in Freely Convertible Currency (MLC) will continue to operate on the island, despite the partial dollarization of the nation’s economy. Alberto Javier Quiñones, First Vice President of the Central Bank of Cuba, emphasized that “MLC accounts held by clients with their banks will not be affected” [1[1[1[1].
In the first days of January 2025, there has been significant activity regarding the MLC. New shops have opened that accept only payments in dollars, offering a variety of goods at prices accessible to the average Cuban wage. This trend is part of a broader economic policy that includes the partial dollarization of the economy adn the use of MLC in various sectors, including pharmacies, international stores, and airports [2[2[2[2].
, despite predictions of its imminent demise, the MLC has seen an unexpected appreciation in value on the informal market. On February 14, 2025, the MLC’s value rose slightly from 245 CUP to 246.50 CUP, indicating a 1.50 CUP increase [3[3[3[3].
These developments suggest that the MLC will continue to play a significant role in Cuba’s economy,even as the government implements measures to manage and control its use. The partial dollarization and the continued operation of MLC accounts reflect a complex and evolving economic landscape in Cuba.
The Ever-Evolving MLC: A Vital Currency in Cuba’s Shifting Economy
The ongoing economic transformations in Cuba have sparked much discussion, particularly regarding the future of the Freely Convertible Currency (MLC). Recent government pronouncements and market activity suggest that the MLC continues to hold important weight in Cuba’s financial system, despite the country’s move towards partial dollarization.
Senior Editor: Thank you for joining us today, Dr. Rodriguez. Your expertise on Cuban economics is invaluable as we navigate these complex changes.To start, can you shed light on the recent confirmations regarding the continued operation of MLC bank accounts in Cuba?
Dr. Rodriguez: Absolutely. As you mentioned, in early 2025, the Cuban government, through Alberto Javier Quiñones, the First Vice President of the Central Bank of Cuba, definitively stated that MLC accounts held by clients at banks will remain in effect. This declaration directly addresses concerns that the emergence of dollarization might lead to the phasing out of the MLC system.
Senior Editor: The widespread implementation of dollar-denominated stores is certainly a significant advancement. How does this trend align wiht the continued use of MLC?
Dr.Rodriguez: This is a clever maneuver by the Cuban government. You see, while dollarization has begun in certain sectors, it’s been carefully controlled through the introduction of these dollar-designated stores. These stores cater to a broader customer base, offering goods at prices accessible to the average Cuban wage. This use of dollars within a controlled setting allows the government to experiment with dollarization while simultaneously maintaining the role of the MLC in other areas of the economy.
senior editor: It’s interesting to note that the MLC has actually experienced an uplift in value on the informal market, despite some predictions about it’s decline. Can you elaborate on the factors driving this upward trend?
Dr. Rodriguez: The reasons behind the MLC’s resilience are multifaceted. First, it’s an established currency within Cuba’s current economic framework, used in various sectors. It provides a stable option for both consumers and businesses during this transition period. The government’s affirmation of its continued use also contributes to its perceived value. Moreover, the limited access to hard currency for many Cubans makes the MLC a valuable asset.
Senior Editor: What can you tell us about the government’s broader economic strategy considering these changes?
Dr. Rodriguez: It appears the Cuban government is taking a measured approach to its economic reforms. Partial dollarization and the continued utilization of the MLC suggest a desire to test different models and find a balance that works best for the Cuban economy.It’s a delicate balancing act, aiming to address economic challenges while safeguarding the financial stability of the nation.
Senior Editor: This has been a interesting insight into the evolving landscape of Cuban currency. Dr. rodriguez, your expertise has been greatly appreciated.
Dr. Rodriguez**: My pleasure.It’s a dynamic situation, and I believe these developments will continue to shape Cuba’s economic future.
The interview with Dr. Rodriguez reveals the ongoing complexities within Cuba’s economic system. While partial dollarization introduces new dynamics, the continued use of the MLC demonstrates the government’s cautious and phased approach to economic reform. The MLC’s unexpected gratitude on the informal market highlights its enduring value to Cubans, while the government’s measured implementation of dollarization suggests a careful balancing act between embracing change and maintaining stability. The coming years will undoubtedly reveal further developments in this intricate economic tapestry.