The people of Ecuador are rising up to refound their country as a pluri-national homeland for all. This inspiring movement, with Ecuador's indigenous peoples at its heart, is part of the revolution spreading across the Americas, laying the groundwork for a new, fairer, world. Ecuador Rising aims to bring news and analysis of events unfolding in Ecuador to english speakers.

Thursday, July 31, 2008

Ecuador sticks with US dollar as currency

QUITO, Ecuador (AP) — Central Bank President Carlos Vallejo says Ecuador is going to keep using the U.S. dollar as its currency despite concerns that its weakening value may spur inflation.

The bank chief said Wednesday that the country's hefty oil exports and US$2.5 billion in remittances from Ecuadorean emigrants keep the monetary system sustainable.

Vallejo says that it would be "crazy" and to abandon the greenback under these conditions, but says the country needs to prepare for switching currencies if remittences wane or oil prices plummet.

Ecuador unveiled subsidies in June to combat soaring food costs tied to the lagging dollar.

The country switched to the U.S. currency in 2000 amid an economic crisis.

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