Concerning the 20 years of dollarization in Ecuador, this afternoon the conferences of Domingo Cavallo, former Minister of Economy of Argentina, and George Selgin, academic and expert of the Cato Institute, were held at the headquarters of the San Francisco University of Quito
Selgin explained the benefits of the monetary scheme and highlighted the strength that it has since its implementation in Ecuador; especially, due to the reduction of risks, such as exposure to a foreign exchange embargo, and the increase in surpluses for the consumer. As challenges, he argued the need to increase banking.
Cavallo recounted how convertibility in Argentina managed to reduce inflation and generate more confidence in investors.
He pointed out that the adoption of a fixed exchange rate causes a kind of “straitjacket” that protects the economy from political decisions.
Both experts stressed the importance of the private sector, of greater investments, to sustain dollarization in Ecuador.