Ecuador's president denounces adoption of U.S. dollar

By Matthew Walter and Theresa Bradley
Bloomberg News Service
Monday, April 2, 2007

http://www.bloomberg.com/apps/news?pid=20601086&sid=aDwMjnauuvFg

GUAYAQUIL, Ecuador -- Ecuador's decision to adopt the U.S. dollar has been "a complete failure," benefiting the wealthy while creating too few jobs, President Rafael Correa said.

"We've stabilized at price levels that are far too high," Correa said in Guayaquil, where he is providing details about his economic plan. "The dollar has been a complete failure."

Ecuador adopted the U.S. dollar as its official currency in 2000, a year after defaulting on $6.5 billion in debt. The U.S. currency offered a stability that attracted investors, revived the banking system, and helped slash inflation to 2.9 percent last year from 108 percent in 2000.

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