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Cubans rushed into a buying frenzy
HAVANA - Fearing steep price hikes and sold-out stores, scores of Cubans rushed into a buying frenzy on Tuesday, clearing shelves of detergent, cooking oil and other necessities in response to an abrupt Cuban government decree that froze most American dollar sales across the island.
The Cuban government announced a new era of belt-tightening, saying the Bush administration's "brutal" sanctions enacted last week will require prices to be raised on fuel and other commodities. In response to the new U.S. sanctions, Cuban officials on Monday ordered a freeze on sales at Cuban "dollar stores," controlled by the government, which sell a variety of essentials that are not stocked in peso stores.
While some Cubans resented their government's announcement, saying higher prices would make it harder for them to scrape by, others blamed the White House for clamping down on their economy, which is slowly inching back from a recession.
"The ones who will hurt the most are the poorest," said Ana Rodriguez as she hauled sacks of detergent into her car on Tuesday.
Across Havana, many stores displayed "closed for inventory" signs, and store managers said they would reopen with marked-up prices. At a gas station, one manager said fuel prices would go up by 15 cents a liter.
At the La Puntilla shopping mall in Havana's Miramar neighborhood, customers packed a grocery store buying powdered milk, chicken, toilet paper, toothpaste and other goods. But an escalator leading to boutiques, a furniture shop and hardware store was roped off as part of the decree, which stopped all sales in dollars except for fuel, food and personal-hygiene products.
According to the government statement published on the front page of the Communist Party newspaper, the current exchange rate will remain at 26 pesos to the dollar and limited food items available through the ration booklets will remain at the same price. Additional measures might be forthcoming, the statement warned.
May 18, 2004 06:47 PM | 1-855-ABOGADA | Abogadas de Inmigracion
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