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:

ecuador-dollar-coins

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s