Dollarization: Qualities are its pros and cons

More and more people are in favor of a dollarization of the country, an alternative proposed by the national deputy and economist Javier Milei. This is why we did a parallelism with the Ecuadorian experience.

In this context, we communicate with Hernan Maderapolitical analyst, who spoke about an eventual dollarization and the Ecuadorian experience.

“The context in which Ecuador dollarized is very different from the one we have in Argentina”said the interviewee. “There was a banking crisis in Ecuador due to the country’s dependence on oil, there were no reserves,” he completed.

“A typical family in Ecuador needs 700 dollars to live in Ecuador and the average salary is 500”said the analyst. “In convertibility, one of the pillars of the model was that retirees earned little,” he added.

“Dollarization put Ecuador on the map, it gives you stability,” explained the interviewee. “Today the salaries in Ecuador are not enough but there is great stability in prices, prices converge between the United States and the country”explained.

Then, the interviewee said that sectors of Together for Change promote a bimonetarism, which would generate a greater dollarization of the private sector, keeping the public sector in pesos. “This will seek to liquefy the public debt”completed the interviewee.

Finally, Madera said that there will be a salary liquefaction after the elections and that there will have to be a monetary decision after the value of relative prices.