Ecuador News

Presidential candidates agree: The U.S. dollar will remain Ecuador’s official currency

All eight of Ecuador’s presidential candidates say they will maintain the U.S. dollar as the country’s official currency.

Presidential front-runner Lenin Moreno

Front-runner Lenin Moreno has given one of the strongest defenses for the dollar, saying that its adoption 17 years ago, following the failure of Ecuador’s sucre, restored faith in the economy. “The dollar reestablished trust in our monetary system and was a major factor in the growth we’ve experienced in the last two decades.”

Moreno’s position differs from that of President Rafael Correa’s, who has called the dollar “a financial straight jacket” that should be replaced as soon as possible. Moreno, like Correa, represents Alianza País.

Guillermo Lasso, the Creo party candidate running second to Moreno in the polls, said he too would maintain the dollar and “defend its use against all challengers.” Lasso questioned Moreno’s dollar defense, citing Correa’s desire to establish a regional currency. “The dollar is the bulwark against the disaster in Venezuela that has been supported by our current administration.”

Cynthia Viteri

Third and fourth place candidates, Cynthia Viteri (Social Christian) and Paco Moncayo (Democratic Left), also gave their support to the dollar.

“It has been the families of Ecuador who have benefited the most from the stability of the dollar,” Viteri said. “After years of uncertainty with the sucre, they finally had a currency that protected the savings from their hard work. I would never take that away.”

According to Moncayo, the dollar makes sense for Ecuador as a global currency in a global economy. “There is no good argument to leave the current system,” he said. “It has served us well since the collapse in 1998 and will continue to serve us well as we expand our economy into world trade.”

All candidates acknowledged that the strength of the dollar is causing some near-term economic hardship in the regional trading market but say it is more than offset by the stability it provides. “Currencies rise and fall and the dollar is no different,” Viteri said. “But it also gives us the discipline we need to keep our economy under control.”

  • Tommy H.

    Keep some gold and silver around anyway, just in case.

    • gerald

      Yes, prudent advice. All fiat currencies eventually revert to their intrinsic value, which is Zero.

    • Aging Expat

      No kidding, Tommy. A stable dollar? Hmmm . . . With the U.S. government officially closing in on $20 trillion in debt, and over $200 trillion in debt if you throw in unfunded liabilities and use an accrual method of accounting like you’re supposed to, I’d rethink that. Even the U.S. Government Accounting Office (GAO) has said the U.S. government is on a “fiscally unsustainable path,” largely on account of Medicare and Social Security. (Ring a bell Cuenca Expats?) Maybe people have forgotten what unsustainable means.

      Gut the propaganda and you’ll see the U.S. dollar looks more like the Zimbabwe dollar than a responsibly managed currency. It’s reminiscent of Voltaire’s observation : ” It is the destiny of all fiat currencies to return to their original value : ZERO.” The USD would have cratered after dumping Bretton Woods in 1971 had the U.S. not kept things going with the Petro Dollar scam. (See economist Michael Hudson’s “Super Imperialism: The Origin and Fundamentals of U.S. World Dominance” (1972)). The current crop of presidential candidates in Ecuador surely know this. I suspect they are simply attempting to accommodate the ignorance of the majority of their electorate — same as in the U.S. In fact, I’ve had several well placed sources in Quito tell me as much.

      Every dog has its day. Rome ran on debased currency for centuries before tanking at the end of the Diocletian dynasty. It took more than 1,000 years to recover. (Gibbons: “The Rise and Fall of the Roman Empire.” Joseph Tainter: “The Collapse of Complex Societies.”) The U.S. dollar ponzi scheme will meet its end soon, as well, and countries like Ecuador that use it will be forced to find a viable alternative.

  • lucila

    Does not one of these talking heads have any CLUE whats happening with the dollar? And the Chinese Yuan will likely replaced the debt ridden dollar as the reserve currency in the near future; the dollar is sliding into the disaster debt tank as planned. All of these people are either lying or fools, typical politicos trying to appease the ignorant masses into non preparedness….its sad how well it works.

    • Jason Faulkner

      How does a tiny country like Ecuador “prepare” for a global economic meltdown? Once it begins, all fiat currencies are toast.

  • 1Maineac1

    Medicare and Social Security are self-funded by workers and employers. It does NOT add to the debt. Except for the fact that Reagan borrowed from it and it has never been paid back! It is solvent for at least another 30 years…..

    • Aging Expat

      Solvent for another 30 years? Look . . . the dollar has lost 97% of its value since the Federal Reserve took over in 1913. To see it go to zero only means it loses that last 3%. What difference does it make if a fund is solvent if the currency you’re paid in has little to no value?

  • Jason Faulkner

    Gold has no intrinsic value. You can’t eat it. You can’t use it as a tool. It’s the ultimate fiat currency.

    • Charles Caywood

      Fiat money has been defined variously as: Any money declared by a government to be legal tender. State-issued money which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard. Intrinsically valueless money used as money because of government decree. …. However, my take on it is that history shows that gold has had value simply because there have been people who desired it because of it properties and beauty. Then there is also quite a bit of history of gold being used as a standard of value. So, for the short term, let us say the next 10 or 20 years, gold will have value. Individuals and countries who have it will be better situated financially than those who do not have gold,

      • Jason Faulkner

        Gold has had value because there have been governments willing to accept it as legal tender. There isn’t enough gold on the planet for it to continue that role with a population of 7 billion people.