The President of the Republic of Ecuador, Rafael Correa, said yesterday that the U.S. dollar will remain as the countrys 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 countrys foreign debt this week, defaulting on the countrys $3.9 billion foreign bonds.
Earlier Correa criticized the policy of maintaining the U.S. dollar as the countrys 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 defaults are ruled out.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
