In an interview with Ecuavisa, the mayor of Guayaquil, Jaime Nebot, when referring to the economic crisis caused by falling oil prices, said that “dollarization is not a purely economic issue for experts, is the quality of life of the people, especially the poor.”
For Nebot, “if dollarization disappears, a chain of awful misery would come for the country.” He also explained that dollarization has benefited the poor, it is true that is a straitjacket to some extent. “Well, in asylums they put a straitjacket on the crazy so they do not harm.”
The mayor admitted it is true that some capacity is lost against foreign exchange management, but governments can not sustain that countries that devalue most are those who are better, because they are in the worst crisis. “A strong currency is good for the country, it indeed brings difficulties of competitiveness, but there are ways to fix that with targeted and temporary incentives.”
Now, faced with the crisis, on the public side there is no immediate exit, it has grown enormously; is not the fault of the government that the oil price has dropped, but a contingency fund should have been saved; for “lean times”. For Nebot, the exit is on the side of confidence and investment, although the regime shows otherwise, despite showing more prudence.
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