Ecuador: Dollarization Stays for Now

Quito, Jan 17 (Prensa Latina) The president of the Ecuadorian Central Bank (BCE), Carlos Vallejo, denied that Ecuador would abandon the dollar system or create create a dual-monetary system.

"I want to stop speculations by groups interested in destabilizing the government. We are not going to abandon the US dollar," Vallejo told media.

He said a Monetary System reform bill reported by the newspaper Hoy had been studied in 2007.

It was rejected based on the new Constitution approved last September 28, he explained.

The BCE official said speculation started circulating last December.

"Neither are true," he said, explaining "these perverse and bad intentioned comments intend to destroy the economy."

Ecuador assumed the US dollar as national currency when the economic and financial crisis of 2000 led to bankrupcy of about twenty financial institutions and superinflation of the Sucre, the national currency.