Economy Minister Joaquín Alonso Vázquez has framed the government's new partial dollarization measures—detailed in last week's resolutions—as a temporary bridge to full de-dollarization and 'socialism with Cuban characteristics.' The policy allows private entities to retain 80% of foreign currency earnings while building a formal exchange market.
The resolutions, published December 11 in the Official Gazette and effective December 17, build on the foreign currency management framework by enabling direct peso-based purchases from the state and authorizing private bank accounts for transactions and imports.
Vázquez emphasized the end goal of peso-only transactions for sustained development, stating, 'We are not building capitalism... we are building a socialism with the characteristics of our country.' This follows unsuccessful reforms like the 2011 Communist Party guidelines and 2021 Reordering Task, which failed to curb inflation, deficits, and informal markets such as El Toque. Cuba's GDP has contracted 11% over five years, exacerbating liquidity crises that previously banned repatriation of foreign earnings by companies and embassies.
Critics note the Economy Ministry's centralized approvals for operations could limit private autonomy, treating dollar access as a privilege. Former Minister Alejandro Gil, now imprisoned for life, championed prior hybrid approaches. No timeline exists for reversing partial dollarization, suggesting prolonged dual-currency use.
