Gary A. Scott woon er al jaren met zijn vrouw. Ziet er allemaal ook prachtig uit. Het land probeert nu echter uit of het weg van de USD kan raken met de invoering van de UDIS. “Ze” zien het niet meer zitten met die Amerikaanse dollar. U wel ? Het is het zoveelste experiment dus er lééft wel degelijk iets, nietwaar ? Laat het ons vooral weten !
HOY (Newspaper of Quito) recently wrote an article about Ecuador’s new currency – The experimental UDIS.
Agricultural land near Bahia
Such rural areas is where…
the UDIS is being introduced and tested.
See how to get a free report on Bahia, Ecuador below.
Cartoon about Ecuador’s new currency in Hoy. Hoy is a Quito based morning newspaper published continuously since 1982, an important publication known for its openness to different schools of thought.
One of our Ecuador contacts… an exporter sent this note about Ecuador’s new currency and the HOY article:Gary, the government is promoting a “new currency” in rural areas in Ecuador, they call it UDIS and the exchange rate is 1:1 to the dollar. They say it is not a currency but it is only a payment method. Right?
So people in these rural areas can exchange their merchandise against this UDIS. So if you like an ice cream you can pay in UDIS and that will be OK. You can also pay in dollars too. The thing about this is that with the UDIS it seems that the government is testing if they will be able at some point in the future, to eliminate the US dollar.
This is no secret. Correa has always said that he believes that the dollar is not good for Ecuador. But he has also stated that we can’t get away from it. I believe that also. Since we don’t have our own currency we are unable to have our own fiscal policy. But history has shown that Ecuador’s fiscal policies have always created dramatic inflation. Inflation could be our worst enemy.
Basically this is a wait and see policy. We won’t know if this will work and they are saying that they will test this model for about two years. The experiment is starting in rural areas and may never be big enough to replace the dollar. If so, this won’t have the effect that Correa wants.
We will have to wait and see how this ends up. Having our own currency would not be all bad. All would depend on our monetary policies. For exporters it will be a great boost.