You are here

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

Section: Daily Dispatches

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

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.

* * *

Help Keep GATA Going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at GATA is grateful for financial contributions, which are federally tax-deductible in the United States.