  We implement a cluster-update Monte Carlo algorithm to simulate magnetic
dipoles of the XY-spin type confined in a two-dimensional plane. The long-range
character and anisotropy in the dipole interaction are handled by using the
Luijten-Bl\"ote algorithm and the Dotsenko-Selke-Talapov algorithm,
respectively. We have checked the performance of this cluster-update algorithm
in comparison to the Metropolis algorithm and found that it equilibrated the
system faster in terms of the number of flipped spins, although the overall
computational complexity of the problem remained the same.
