Ecuador Kept the Dollar Through Years of Opposition as Inflation Fell

Ecuador’s adoption of the U.S. dollar stabilized its economy after a banking crisis and currency collapse, but the experience shows why dollarization alone cannot resolve fiscal and banking weaknesses. Former President Jamil Mahuad announced the plan on Jan. 9, 2000, setting the exchange rate at 25,000 sucres per $1. The sucre had fallen from 6,825 per dollar at the end of 1998 to 20,243 at the end of 1999 before reaching 28,000 during the first week of 2000.

Source: TokenPost