‘The ever-increasing value of the dollar is starting to hurt’

It has been 22 years since hyperinflation forced Ecuador to switch from its own currency Sucre to the US Dollar (USD). The exchange rate at the time was USD 1 for 25,000 Sucres. So USD 40 was enough to make you a millionaire in Sucres! The largest banknote was worth 50,000 Sucres, equalling USD 2. Everything was paid in cash, meaning that you often had to walk around with piles of bank notes in your pocket to buy something expensive.

The introduction of the USD was quite controversial at the time and even caused the downfall of the President. But it did eventually bring the desired stability and a nice low inflation. (..)

Click here to read Victor van Dijk’s column in Floribusiness magazine.

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