Ecuador has attracted mostly adventurous tourists eager to discover for some of the Earth’s breathtaking wonders, like the Galapagos Islands, the Andes mountains, the Amazon forest and Las Playas’ beaches. Travelling around the country is made even more convenient because of its dollarized economy.
When Ecuador’s economy experienced a grave economic recession in 2000, the government decided to ditch the sucre and adopt the U.S. dollar as its new currency. Nearly two decades after, the country is thriving with recently-elected President Lenin Moreno eager to strengthen trade with the rest of the world.
By adopting the U.S. dollar as its currency, Ecuador reduced transaction costs for investors wanting to do business in the country and eliminated the costs of fluctuating of currency rates. The decision has also worked in favor of Ecuador because its largest trading partner also happens to be the largest economy in the world .
The usage of the U.S. dollar also generates confidence among other countries and foreign companies that want to invest in Ecuador and most likely transacts much of their trade in the American currency. That security matters a lot given that Ecuador’s economy remains largely agricultural, which can be volatile and vulnerable to Nature’s unpredictability.
While Ecuador will remain a famous for its rich culture and natural beauty, the country is on the cusp of an exciting era, one that will see it fully engaged with its neighbors and distant countries, determined to shed its reputation of economic ills and gaining its status as Latin America’s newest business centers and trade gateways.