Ecuador defends dollarization

· Economics, Latin America

The Minister for the Economic Politicies of Ecuador, Diego Borja, denied that the government is trying to implement a system with two currencies in the country.

According with some versions, experts were studying the possibility of having the Dollar and a local currency, but it was denied by Borja who said that the government will defend the dollarization because it has to see with the salaries of the workers.

Minister Borja mentioned also the project of a Latin American currency, but such idea has nothing to see with the dollarization of his country, according with what was reported by La Hora, a national newspaper.

United States is the main Ecuadorian partner, although the rhetoric of president Rafael Correa is anti-American and shows sympathy for the Venezuela of Hugo Chávez. In that sense, it is possible that the government will follow a similar intervention of the national economy under same Venezuelan patterns, while increasing social spending.

According with The Economist of Britain, the inflation expected for this year will remain about the official rate of 5% in 2008.

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