The president of Ecuador says his country’s decision to adopt the US dollar as its currency in 2000 was an immense error but one that is hard to get out of. Ecuador, like most of Latin America in the 80s and 90s was subject to run away inflation and serial debt and banking crises. They adopted the dollar to achieve low interest rates and stable inflation. Now that the dollar has weakened (presumably hurting exports), the policy is an immense error…go ahead, adopt the BRL or VEB…see if we care…
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