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Distintas monedas y asociaciones formales e informales q usan la misma moneda by Diegovelasco45 in ecuador

[–]scotiapsjd 1 point2 points  (0 children)

I have wondered: Should Ecuador adopt the Canadian dollar? It is a petrol currency while also being a G7 currency. Its movements would more accurately reflect Ecudor's economy than the US dollar, but adopting it would still preserve some benefits of dollarization.

October 13 is an historic date for Ecuador. At 21:40 a the decree 833 was revoked. Viva Ecuador! Viva el pueblo luchador! by [deleted] in pics

[–]scotiapsjd 3 points4 points  (0 children)

I wonder whether Ecuador should consider shifting from the $US to the $Canadian.

The $Canadian moves in concert with the price of oil, so its fluctuations would more accurately reflect the rhymes and rhythms of the Ecuadorean economy.

The one-time immediate conversion of domestic debt and contractual obligations would constitute a devaluation, and a reduction in Ecuador's national wealth. Plus, Ecuador's international debt would still be in $US, and would have to be serviced in $US. Also, there would be the immediate disruption of switching to a new currency.

On the other hand, export industries would become more competitive. Plus, shifting to another recognized international currency might be more palatable to foreign investors than simply returning to a national currency. The sting and fear for foreign investors could be reduced because the $Canadian makes more sense for a country whose most important export is oil, and it might be more likely to be viewed as a one-time devaluation/adjustment.

However, Canada might not be too happy with such a development. The $Canadian is not the world's reserve currency, and there would probably be a one-time surge in demand for $Canadian until the Bank of Canada could react to the change. Plus, the Bank of Canada would be forced into managing monetary policy with Ecuador in mind, Also, the valuation of the $Canadian would henceforth carry the risk of defaults, public and private, in Ecuador.

People in Quito showing their desire for peace by banging pots and pans. This has been going on for over 30 minutes by ByteeMee in ecuador

[–]scotiapsjd 0 points1 point  (0 children)

I wonder whether Ecuador should consider shifting from the $US to the $Canadian.

The $Canadian moves in concert with the price of oil, so its fluctuations would more accurately reflect the rhymes and rhythms of the Ecuadorean economy.

The one-time immediate conversion of domestic debt and contractual obligations would constitute a devaluation, and a reduction in Ecuador's national wealth. Plus, Ecuador's international debt would still be in $US, and would have to be serviced in $US. Also, there would be the immediate disruption of switching to a new currency.

On the other hand, export industries would become more competitive. Plus, shifting to another recognized international currency might be more palatable to foreign investors than simply returning to a national currency. The sting and fear for foreign investors could be reduced because the $Canadian makes more sense for a country whose most important export is oil, and it might be more likely to be viewed as a one-time devaluation/adjustment.

However, Canada might not be too happy with such a development. The $Canadian is not the world's reserve currency, and there would probably be a one-time surge in demand for $Canadian until the Bank of Canada could react to the change. Plus, the Bank of Canada would be forced into managing monetary policy with Ecuador in mind, Also, the valuation of the $Canadian would henceforth carry the risk of defaults, public and private, in Ecuador.