That would be incredibly shortsighted. Assuming it's not the case, it's still a reasonable move: they need to pay their national debts in American dollars. There's no need for countless dollar notes to be circulating throughout the country every day for intra-national commerce, anything else that would be inflated at most below US QE levels would do the same trick and release those USD notes from that task, hopefully sooner or later trickle them back to the national treasury in order to send them back to where they originated. Plans of mice and men, but they gotta give it a try. No country can afford to depend on the US national currency for too much in the long run.
Presume someone resorting to gimmicks to manage spending in excess of revenue is shortsighted (intentionally or otherwise.) Borrowing money in a foreign currency has pros and cons but I suspect most citizens don't realize the long term consequences.
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Given Ecuador's financial situation, this seems like a plan to print money to pay bills, and make that "virtual" money to saving on printing :-)
That would be incredibly shortsighted. Assuming it's not the case, it's still a reasonable move: they need to pay their national debts in American dollars. There's no need for countless dollar notes to be circulating throughout the country every day for intra-national commerce, anything else that would be inflated at most below US QE levels would do the same trick and release those USD notes from that task, hopefully sooner or later trickle them back to the national treasury in order to send them back to where they originated. Plans of mice and men, but they gotta give it a try. No country can afford to depend on the US national currency for too much in the long run.
Presume someone resorting to gimmicks to manage spending in excess of revenue is shortsighted (intentionally or otherwise.) Borrowing money in a foreign currency has pros and cons but I suspect most citizens don't realize the long term consequences.
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They have to pay for exchanging damaged currencies. It cost millions every year to Ecuador. That's what he is referring to printing I believe.