Ecuador to Continue Using U.S. Dollar

The President of the Republic of Ecuador, Rafael Correa, said yesterday that the U.S. dollar will remain as the country’s main currency as the economic crisis offers harsh times for the Ecuadorian financial system.
Since January 2000 Ecuador uses the U.S. dollar as the national currency as one of the means to enhance the economic situation in the country. The ongoing crisis adds pressure on the oil-exporting Ecuador as the oil lost more than 70 percent in the last 3 months.
Ecuador refused to pay interested on the country’s foreign debt this week, defaulting on the country’s $3.9 billion foreign bonds.
Earlier Correa criticized the policy of maintaining the U.S. dollar as the country’s currency and was going to return to sucre — a national currency that has been in use until 2000. Analytics believe that Correa may abandon the dollar only after the consequences of the default’s are ruled out.

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