The dollarisation of Latin America,

Honestly, I have been surprise how the US Dollar has taken over some of the economies of Central and South America and replaced the old currencies, the old adage here still runs: the mighty greenback rules. It has definitely provided benefits for countries however as economies of scale go; I am not fully convinced if becoming a mini US Economy will help in the long run particularly if interest rates raise in the USA.

The pegging of these currencies have taken some years and not the rush that we have seen in the Euro. Two very different formulas.

My chosen photo for today is the dollar coin from Ecuador:



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