Can Ecuador’s External Sector Sustain Dollarization in the Long Run?
Ecuador’s long-term economic stability under a dollarized system hinges increasingly on the performance of its external sector, specifically the ability to generate sufficient foreign currency reserves through exports, remittances, and capital inflows. While the adoption of the U.S. dollar in 2000 eliminated hyperinflation, it removed the central bank’s ability to conduct independent monetary policy, leaving … Read more