Section » Economy

Sacagawea Dollar: King of Currency in Ecuador

Miamiherald.com/By Jim Wyss
QUITO ECUADOR

Busy selling fruits and vegetables on a recent weekday, Luzmila Mita dug into her apron and pulled out a fistful of coins embossed with the image of a Native American woman with a baby strapped to her back.

“I always thought she was one of us,” said Mita, as she looked at the image of Sacagawea, the 18th century Shoshone woman who was part of the Lewis and Clark expedition. “It took me a long time to know she was from up there.”

“Up there” is the United States, where the U.S. Mint has been producing Sacagawea dollar coins since 2000. And even as the coins have lost their luster in the United States, they’ve been embraced in Ecuador, where they’re preferred over paper money.

On the streets of this small South American nation, which adopted the dollar in 2000, Sacagawea is ubiquitous — and something of a kindred spirit in a country where many have indigenous roots. Read Article

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Ecuador: When this fellow sings praises of an economy, then it is time to sell (opinion)

forbes.com/Tim Worstall: (opinion) A useful little aide memoire is that when Mark Weisbrot starts to praise the economic policy of a country, then that’s a real good time to sell everything and run screaming for the hills. Toward that stock of shotgun shells and canned beans you’ve got for when it all really does start […]

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Ecuador: President Correa blames right wing conspiracy in attacking Latin America Integration

panampost.com/karina martin wrote…. Ecuador President Rafael Correa claimed this week that there have been deliberate attempts by the right to destroy the Union of South American Nations (Unasur) and the Community of Latin American and Caribbean States (CELAC). Correa claimed that the right is attempting to attack Latin America integration and its acting organizations. “When […]

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Brazil: Strapped for Cash, Olympic Stadiums in Ruins

dailymail.co.uk reported Brazil’s $12 billion Olympic legacy lies in ruins: Five months after the Rio Games, stadiums are crumbling as cash-strapped nation is left with crippling debts Shocking pictures show arenas used during the Olympic and Paralympic Games last year in disrepair An estimated $12billion was spent on the Games, with nearly the same being […]

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China’s Growing Presence in Venezuela

Marc Frank/reuters.com From buses and trucks to a $500 million golf resort, China is deepening its business footprint in Cuba, helping the fellow Communist-run state survive a crisis in oil-benefactor Venezuela and insulate against a possible rollback of U.S. detente. Cuban imports from China reached a record $1.9 billion in 2015, nearly 60 percent above […]

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Several U.S. Companies Plan Expansion into Mexico Despite Trump Threats

INTERMEDIATE ADVANCED SPANISH VOCABULARY – READ THIS BOOK INTERMEDIATE ADVANCED SPANISH VOCABULARY – READ THIS BOOK panampost.com / Several US companies are planning expansion into Mexico despite warnings from President Donald Trump to impose taxes according to The Wall Street Journal. The newspaper said that Rexnord, a company dedicated to the manufacture of industrial bearings, […]

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Ecuador’s new govt needs to reach trade agreements with U.S. to benefit country

QUITO (Sputnik) -sputniknews.com The new government of Ecuador elected in the elections on February 19 will have the character necessary to reach trade agreements with the US that are positive for the country, said the president of the Chamber of Industries of Guayaquil , Caterina Costa. “I am very positive, I believe that with the […]

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Ecuador: Basic family basket of goods for January 2017 is $701.93

eluniverso.com(machine translated) The basic family basket was calculated in January 2017 at $ 701.93. This was reported yesterday by the National Institute of Statistics and Censuses, in its monthly report. According to the institution, monthly family income (which takes into account that the family receives income equivalent to the basic salary multiplied by 1.6 recipients) […]

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Ecuador could reap bonanza in bonds if opposition wins

Dion Rabouin/reuters – “Ecuador has the potential to be a breakout story depending on how the elections go,” said Arif Joshi, emerging markets debt portfolio manager at Lazard Asset Management, who said Ecuador was one of his top picks for 2017. “If the opposition wins you will likely see the same type of spread compression […]

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Ecuador: Cost of Living surpasses many families monthly income

The deficit per family reaches 143.81 dollars. The testimonies confirm it. Food is the main expense. Lucía Gámez is the mother of two teenagers. She and her husband work and family income reaches $ 700 a month. “Only in food spending an average of 160 dollars a week, a year ago spent 130. Meats of […]

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Trump threatens remittances to Mexico

Mexico’s biggest cash cow is under threat from President Donald Trump. The country’s largest source of cash comes from Mexicans living in the United States. That is now under the microscope after Trump issued an executive order Wednesday to start building a wall on the border. During his campaign, Trump said multiple times that Mexico […]

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Ecuador: So far 3.3 million transactions serviced through e-money

andes.info.ec reported that through January 2, 2017, a total of 3.3 million transactions were made in Ecuador with e-money through 284.529 accounts for 13.2 million dollars. Ricardo Quiroga, promoter of the e-money project “Proyecto Efectivo desde Mi Celular del Banco Central del Ecuador” affirmed that until 2016, 1.000 accounts were reported each month but after […]

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Ecuador: New Intellectual Property Law

lexology.com reported the “Código Orgánico de la Economía Social de los Conocimientos, Creatividad e Innovación,” (Organic Code on Social Economics of Know-how, Creativity and Innovation), which supersedes the current Intellectual Property Law, was recently published on December 9, 2016. SPANISH SLANG ECUADOR – READ THE BOOK As indicated in Article 1 of said Code, “The […]

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Ecuador returns to the bond market again, fourth time in less than a year

By Paul Kilby/IFR The Republic of Ecuador took center stage in Latin America’s primary market on Tuesday, returning with its fourth bond deal in less than a year. Ecuador raised US$1bn through a tap of its 9.65% 2026 at a yield of 9.125%. Hit by the oil rout that began in 2014, Ecuador has leaned […]

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Ecuador closes out 2016 with 1.12% inflation rate, down from 2015, 2014

Ecuador’s annual inflation in this 2016 was 1.12%, as reported by the National Institute of Statistics and Census (INEC). This figure was recorded through the Consumer Price Index in a report and it is also the lowest in the last ten years. In 2015 and 2014 inflation was two points above the current, with 3.38% […]

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17 years ago Ecuador initiated adoption of U.S. currency

andes.info.ec / On January 9, 2000, on radio and television, then President Jamil Mahuad announced the implementation of dollarization. It was the corollary of the worst crisis in the country, triggered by the bankruptcy of a part of the private financial system that resulted in a seizure of deposits and an economy that was on […]

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Ecuador: Imported Liquor From Europe prices begin to decrease, with 0 tariff

ELUNIVERSO.COM REPORTED: The first zero-tariff liqueurs that the agreement with the European Union (EU) envisages are not yet imported from Europe, and in Ecuador the bottles in stock are sold at less price. This is a first effect in the liqueur market in the country, since this product and the inputs for agriculture (urea, fertilizers) […]

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Samborondón, Ecuador: Residents surprised with property tax increases of up to 40 percent

Residents of La Puntilla, in Samborondón, expressed surprise and unease about the increase of approximately 200 dollars, depending on the case, in property taxes in relation to last year. An inhabitant of the urbanization Las Riveras, on the Samborondón road, paid this Wednesday $ 820.91 for that tax, when last year paid $ 612.74. He […]

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Ecuador: New Financial Changes for 2017

elcomercio.com reported the oil, labor, banking, fiscal and prepaid medicine sectors as well as foreign trade will face new rules of the game in 2017, which will be marked by the electoral agenda. The country is forced to reduce oil production in 2017 due to the agreement reached last November in the Organization of the […]

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Mexico: Remittances up stubstantially, highest in ten years

TELESURTV.NET Mexico’s central bank governor Agustin Carstens said that a rise in remittances was due to a weak exchange rate, more U.S. jobs and fears over Trump. Remittances to Mexico posted their biggest jump in over ten years in November in a possible reaction to the U.S. election victory of Donald Trump, who threatened to […]

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Central Bank Predicts Ecuador’s Economy to grow 1.42 percent in 2017

reuters.com/ reported on Dec 29 Ecuador’s central bank expects the Andean nation’s economy to grow by 1.42 percent in 2017 with respect to 2016, central bank manager Madeleine Abarca said in a press conference on Thursday. The country’s economy is seen shrinking by 1.7 percent for 2016 in part due to a 7.8-magnitude earthquake in […]

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Ecuador approves new law in attempt to curb land speculation

elcomercio.com reported that the Ecuador National Assembly has approved a law which is focused on preventing land speculation. It is referred to in Spanish as the plusvalía or capital gains law. The vote was 79 in favor, 27 against and one abstention. The law will put in place a 75% tax on extraordinary profits on […]

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Ecuador: Minimum Monthly Salary set for $375 a month in 2017

The amount was set yesterday in consensus between workers and employers and represents $ 9 more than the current. The basic salary in Ecuador for 2017 will be $ 375, equivalent to an increase of $ 9 to the current amount ($ 366). This was announced yesterday by the Minister of Labor, Leonardo Barrezueta. “We […]

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Ecuador: National Assembly approves trade agreement with European Union

99.7 percent of products exported to EU to have zero tariffs. eltelegrafo.com.ec reported the National Assembly has approved a trade agreement between Ecuador and the European Union, with 97 votes in favor. The trade deal now goes to President Correa before it’s published in the Registro Oficial. The agreement will take effect January 1. 99.7% […]

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Fitch Ratings Downgrades Ecuador

.fitchratings.com (Press Release) Fitch rates Ecuador ‘B’ and assigned a Negative Outlook on Aug. 25, 2016, reflecting the country’s weak growth performance, high fiscal deficits, increasing debt burden, and potential challenges to timely policy adjustments in the context of subdued growth, the oil price outlook and prospects for a divided congress following the 2017 elections. […]

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Ecuador adopts measures with more control over banks

holaciudad.com reported that new measures will slow amounts of money sent out of the country and increase domestic loans. Ecuadorian President Rafael Correa today justified the adoption of recent measures to control the country’s banks as beneficial mechanisms for the economy, as they seek to boost credit and slow the flow of resources Ecuadorian President […]

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Rally in oil prices, Ecuador back to borrow more money

reuters.com reported Ecuador returned to the US dollar bond market Thursday for the third time this year, raising US$750m through a new 10-year note following a recent rally in oil prices. The deal, rated B by S&P and Fitch, will provide much needed funds for the oil-exporting nation, which plunged into recession last year. One […]

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Ecuador Monthly Costs for Basic Basket of Goods, Family of four

BASIC BASKET OF GOOD FOR FAMILY OF FOUR IN ECUADOR NOVEMBER 2016 COST IS $ 692.56 ______________________________________________________________________________________ NATIONAL INSTITUTE OF STATISTICS AND CENSUS – INDEX OF PRICES TO THE CONSUMER. ANALYTICAL BASKETS BASIC FAMILY BASKET AND VITAL FAMILY BASKET OF THE DOLLARIZED ECONOMY NOVEMBER 2016 Analytical baskets consist of about 75 to 359 products make […]

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Ecuador: Economic Outlook

September 13, 2016 focus-economics.com reported Ecuador’s dollarized economy is facing myriad pressing issues that stem from subdued oil prices, a strengthened dollar and the aftermath of April’s earthquake. The country has undertaken fiscal and external adjustments that signal its commitment to maintain the official dollarization, which is widely regarded as conducive to macroeconomic stability. Nonetheless, […]

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Venezuela unraveling at breakneck speed, one dozen eggs $150

OSINT GLOSSARY – GET THE BOOK FOR IMPROVED INTERNET SEARCH RESULTS zerohedge.com reported — The question of whether Socialism can be an effective economic system was famously raised when Margaret Thatcher said of the British Labor Party, “I think they’ve made the biggest financial mess that any government’s ever made in this country for a […]

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Ecuador: Basic Monthly Cost of Food Basket for family in August is $689

REAL ESTATE IN ECUADOR Ecuador registered an inflation rate of -0.16% in August, according to the latest report by the Consumer Price Index (CPI). eldiario.ec reported the study was published by the National Institute of Statistics and Census (INEC). Accumulated inflation from January to August reached 1.04%, while the annual August 2015 to August 2016 […]

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Ecuador: Economy to shrink 1.7 percent in 2016

reuters.com reported Ecuador’s central bank said on Thursday it expects the economy to shrink 1.7 percent this year, switching its previous forecast for growth due to lower oil prices and the devastating effects of a earthquake that shook the country in April. The central bank of Ecuador had forecast ed growth of 1 percent for […]

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Could Ecuador Become Another Venezuela?(observations)

ANONYMOUS POST MADE AT STEVEQUAYLE.COM WITH OBSERVATIONS OF ECUADOR WILL REAL WORLD EVENTS HAPPENING IN ECUADOR LEAD TO ANOTHER VENEZUELA? As an aside, things in Ecuador getting bad, the economy is being destroyed by el presidente and his willing legislators………many here, are saying Ecuador will soon follow Venezuela into hell on earth. They have raised […]

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Ecuador: Dollarization has brought stability, shielded economy from excesses of populism (Opinion)

Juan Carlos Hidalgo (CATO INSTITUTE)nacion.com(machine translated) What if Ecuador had its own currency? Or rather, what if Rafael Correa had the ability to print money to finance the huge budget hole of your government? The question is timely because it highlights a huge benefit that gives dollarization countries with a sad history of fiscal irresponsibility […]

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Ecuador: Hotel Occupancies fall 13 percent

july 2016 hotelnewsresource.com reported Ecuador reported decreases across the three key performance metrics. The country’s occupancy fell 13.0% to 59.4%; ADR was down 6.8% to US$97.20; and RevPAR dropped 18.9% to US$57.76. According to STR analysts, Ecuador’s economy is heavily dependent on the oil industry. With crude oil prices down, and Ecuador being the only […]

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Ecuador: Prices Down in July 2016 (-0.09%)

ELUNIVERSO.COM REPORTED…Ecuador recorded a negative inflation in July. This was announced this morning by the National Institute of Statistics and Census. Inflation in July was -0.09%, according to the latest report. The figure is slightly lower than that recorded in July 2015 and was -0.08%. According to INEC, the divisions that more influeyeron, down in […]

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Fitch Affirms Ecuador at ‘B’; Outlook Revised to Negative from Stable

Fitch Affirms Ecuador at ‘B’; Outlook Revised to Negative Fitch Ratings-New York-25 August 2016: Fitch Ratings has affirmed Ecuador’s Long-Term Foreign Currency Issuer Default Rating (IDR) at ‘B’ and revised the Rating Outlook to Negative from Stable. The issue ratings on Ecuador’s senior unsecured Foreign Currency bonds are also affirmed at ‘B’. The Country Ceiling […]

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Ecuador to open trade office in Iran

QUITO (Sputnik) – The Government of Ecuador announced the opening of a trade office in Iran which will aim to promote the “competitive advantages and attractive” the South American country. “We want smart investment that creates jobs, develops technology, value-added, global production chain. We make efforts to generate sustainable investment and sustainable exports,” said the […]

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Ecuador: Correa states neoliberalism is the failure, not socialism

cuadoran president Rafael Correa on Sunday denounced “fantasies of trickle-down theories” and said that it’s neoliberalism, not socialism that has failed his region. Latin America has largely pursued “socialism of the 21st century,” TeleSUR reports the leftist leader as saying in an interview. Despite current external factors affecting his country’s economy—like the fall in the […]

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Ecuador: Govt. plans expansion of electronic money for payment

Prensa Latina) REPORTED Ecuador government institutions held today a meeting between programmers with the aim of promoting the development of free software to expand the use of electronic money as a means of payment. The Coordinator Ministry of Knowledge and Human Talent, the Secretariat of Higher Education, Science, Technology and Innovation and the Central Bank […]

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Ecuador: Puerto Bolivar destined to become largest container terminal in Latin America

joc.com reported a Turkish port operator is determined to transform an Ecuadorian port, most well-known as one of the world’s largest shipment points for bananas, into the largest container terminal in Latin America. Yilport Holding, a subsidiary of the Istanbul-based Yildirim Group, has secured the rights to Puerto Bolivar in Machala City, Ecuador, a city […]

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Ecuador: Redistribution of Poverty (Opinion)

Leonard Quinde Allieri “Opinion”/PANAMPOST Correa’s administration is very proud to say that over the last 10 years, it has managed to double Ecuador’s GDP. What they do not say is how they have generated this increase — irresponsible spending that has damaged the economy. Correa mismanaged the highest oil revenues in Ecuadorian history. And what […]

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Economist Intelligence Unit reports Ecuador seventh worst performing economy in world

There are only two dollarized countries among the 20 worst. The figures are from the Economist Intelligence Unit. lahora.com.ec reported Ecuador is the seventh worst economy in the world according to the group Economist Intelligence Unit. A single outgrow Ecuador Venezuela, which ranks first, and countries such as Guinea, Syria, Libya, Azerbaijan and Brazil. The […]

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Ecuador sinks deeper towards state of outright crisis (Opinion)

Thedialogue.org Ecuador Unsteadied Low oil prices. A stronger dollar. The aftermath of an earthquake. A looming general election with no clear outcome. Every day Ecuador sinks deeper towards a state of outright crisis. In the face of an economic contraction, the country must overcome enormous obstacles to recovery and growth. Its politics do not offer […]

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Guayaquil Ecuador: Businesses closing, sales slump, insecurity, import issues

elcomercio.com reported at the corner of Mendiburo and Escobedo, downtown Guayaquil, Hermes Rodriguez attends a small pharmaceutical distributor in an establishment that is surrounded by enclosed premises, with signs stuck on the roller doors that advertise ‘rent’. At least there are twelve unoccupied spaces in both senses of that intersection. Only in the building occupied […]

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Ecuador: Correa says country experiencing “perfect storm” blaming dollar

alternet.org reported Ecuadorean President Rafael Correa rejected the notion that the leftist and revolutionary governments in Latin America have failed and instead posited that the real failure in the region has been the neoliberal economic model. “Inequality in a poor country means misery, generalized misery. We must seek out other forms of developing ourselves that […]

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Ecuador: Recap of banking crisis of 1999

SPEAK LIKE AN ECUADORIAN – SPANISH SLANG ECUADOR – READ THE BOOK telesurtv.net reported seventeen years ago a banking crisis that had simmered for years finally boiled over. Ecuadoreans protest the neoliberal measures adopted by the government of Jamil Mahuad in order to save the banking industry in 1999. On March 8, 1999, Ecuadoreans awoke […]

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Ecuador: Dollarization has been monetary suicide per president

telesurtv.net reported… “It’s like fighting in the ring of globalization with a straitjacket,” said Ecuadorean President Rafael Correa. Ecuadorean President Rafael Correa said his country committed “monetary suicide” when it decided to adopt the U.S. dollar in 2000, but that giving it up now would “cause an economic, social and political chaos.” “Very few countries […]

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Ecuador’s recovery expected to be slow and challenging per consulting company

cemnet.com reported With severe earthquakes, massive debts and low crude oil prices, Ecuador’s way ahead appears uncertain. The country’s future is dependent on the outcome of the 2017 elections and a recovery in oil prices to get the economy moving again in the right direction under positive leadership. By Rob Roy, ROI Consulting, USA. Ecuadorian […]

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Ecuador: Prices increased nearly 50% in the last decade (Analysis)

VISTAZO.COM – Tristana Santos / Darwin Borja reported although we use the same currency, in the last decade Ecuador prices increased more than twice that of the United States. An analysis of the causes.Between 2006 and 2016 prices in Ecuador have risen nearly 50 percent, according to the Consumer Price Index (CPI) of the National […]

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Analysis of Dollarization in Ecuador

By Sam Wang, Research Associate at the Council on Hemispheric Affairs To download a PDF version of this article, click here. Every day since 2015, thousands of Ecuadorians have crossed the bridge from Tulcán, Ecuador to the border town of Ipiales, Colombia to go shopping. Goods they purchase in Colombia include food, cars, television, and […]

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Ecuador returns to the bond market, paying 11 percent

bloomberg.com reported Ecuador is offering bonds in the overseas market with the highest coupon since 2000 as the nation seeks to plug a financing gap following lower oil prices. The South American nation is marketing five-year dollar notes to yield around 11 percent, according to a person familiar with the matter, who is not authorized […]

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Ecuador: Drastic Dive in Sales Revenues for Hotels, Restaurants in 2016

elcomercio.com reported by Sebastián Angulo Stives Reyes 22 July 2016 00:00 More Rooms and less diners: so was the beginning of the year for the sector of accommodation and food services. The activity decreased by 13.2% in the first quarter of this year compared to the same period last year. This is the worst first […]

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Ecuador: Correa aims for more debt and taxes

The earthquake in Ecuador on April 16, which resulted in 659 deaths (a figure that is still growing) and thousands of homeless, has also added to the population’s tax burden. The Government has increased VAT from 12% to 14% for a one year. For the same period, companies will pay a 3% tax on profits […]

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Ecuador: Economy contracts 3% first quarter not including impact of earthquake

Current figure of contraction does not include impact of April’s earthquake. Bank will have to update its statement. Reuters.com reported / Ecuador’s economy contracted by 3 percent in the first quarter of 2016 compared with the same period a year earlier, the central bank said late on Friday. This was driven by a contraction of […]

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Ecuador: At current oil prices, 20 billion dollars in proven oil reserves declared

Ecuador Confirms Another $20 Billion in Oil Reserves telesurtv.net reported a U.S. oil engineering company said that the Amazonian site has 1,672 million barrels of proven reserves, nearly twice what was previously believed. Ecuador’s proven oil reserves grew recently with the announcement by Vice-President Jorge Glas that Block 43 in the Amazonian province of Orellana […]

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Ecuador: Correa going after politicians, pubic servants with funds in tax havens

Ecuador’s Correa Takes Aim at Politicians Utilizing Tax Havens Telesurtv.net reported Ecuadorean President Rafael Correa is a fierce critic of tax havens and said he would fight them both domestically and internationally. Rafael Correa is seeking a mandate from the Ecuadorean people to see that politicians and public servants who store their money in offshore […]

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International Living touting real estate deals in Ecuador

internationalliving.com/Suzan Haskins wrote: Ecuador…the small South American country that sits right on the equator…is blessed with many advantages—particularly its diverse, gorgeous terrain, and fantastic climate. No matter what you’re looking for…from lush rainforest to majestic mountains to sun-kissed beaches, you’ll find it here. And about that climate…daytime temperatures in the Sierras—along the Andes Mountains range […]

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IMF makes emergency loan to Ecuador of 364 million dollars

IMF granting loan under Rapid Financing Instrument Loan does not come with conditions, money being disbursed immediately enca.com reported the International Monetary Fund said Friday it approved a $364 million emergency loan to Ecuador after the country was hard-hit by an earthquake in April. The money will help the country steady its finances while it […]

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How Things Change in Two Years – Rafael Correa’s Speech in 2014 at Harvard

IN 2014 SPEECH AT HARVARD RAFAEL CORREA STATED: April 11, 2014 harvard.edu – “Democracy has been firmly established in Ecuador,” Correa said. “Not only democracy in the formal sense, but real democracy, in terms of people’s access to rights, equal opportunities, and dignified living conditions. This is the so-called ‘Ecuadorian Miracle.’ ” Between 2007 and […]

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Venezuela intentionally crushed the middle and working class

mises.org/Ryan McMaken Unlike other leftist South American regimes, the Venezuela regime has intentionally crushed even the middle and working classes. The economic disaster in Venezuela has prompted many to take a look at the country and attempt to understand what it is that has made things so bad in Venezuela. It’s not enough to say […]

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Censorship, corruption and fiscal crisis in Ecuador (Public Comment)

Even the 7.8 earthquake, many people began to understand that, in times of crisis, political and economic problems have direct effects internacional.elpais.com (PUBLIC COMMENT)/ Ezequiel Vazquez-Ger wrote During the presidencies of Rafael Correa between 2007 and 2015 oil revenues reached 80 billion dollars. A comparatively bulky amount, taking into account that oil revenues in the […]

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Ecuador in discussions with IMF for reconstruction funds after earthquake

reuters.com reported Ecuador is negotiating credit lines to finance reconstruction after this month’s devastating earthquake with multilateral agencies that include the International Monetary Fund, a government official said on Thursday. The Andean nation has already opened an emergency credit with multilateral agencies including the World Bank and the Inter-American Development Bank for about $600 million, […]

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U.S. Officials predict that President Maduro not likely to complete his term

reuters.com/Matt Spetalnick roported the United States is increasingly concerned about the potential for an economic and political meltdown in Venezuela, spurred by fears of a debt default, growing street protests and deterioration of its oil sector, U.S. intelligence officials said on Friday. In a bleak assessment of Venezuela’s worsening crisis, the senior officials expressed doubt […]

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Ecuador, fifth worse performing economy in the world for 2016 per IMF

THE CURRENT ECONOMIC CRISIS WORSE THAN 1999 – Emililo Palacio wrote… In the first quarter of this year, nearly 100,000 urban workers plunged into the abyss of unemployment in Ecuador. That represents half a million people (considering five members per family on average) who were left without a steady income in just three months. Unemployment […]

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Ecuador, Goldman Sachs Gold Deal in 2014

wallstreetexaminer.com/David Zeiler /June 6, 2014 wrote: Unbowed by fines and new regulations, Goldman Sachs (NYSE: GS) has simply looked elsewhere for fresh victims. In a deal that barely registered with the mainstream media, Ecuador’s central bank agreed earlier this week to swap half of its gold reserves – worth $580 million – with Goldman in […]

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REASONS WHY VENEZUELA ON VERGE OF COLLAPSE

panampost.com reported — Following the publication of Sabrina Martin’s article in the PanAm Post, “Looting on the Rise as Venezuela Runs Out of Food, Electricity,” several readers have asked how Venezuela, a country regarded as a future Australia in the 1960’s and 70’s, entered its current economic crisis. There are hundreds of reasons for this. […]

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Economists say larger economic problems still lie ahead for Ecuador

nytimes.com/ NICHOLAS CASEY reported In Ecuador, a 7.8-magnitude earthquake a week ago helped set off what many say was a debate years in the making. Over the last decade, the government made significant investments in infrastructure and education while depleting emergency funds set aside for disasters like earthquakes, analysts say. Spending on government salaries also […]

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Ecuador: No choice but to go to the IMF because its has no choice says economist

ft.com reported the devastation in Portoviejo is so complete that Johnny Quijano does not know how Ecuador will recover. A week after a powerful 7.8 magnitude earthquake flattened much of the centre of the city of 220,000 people and countless other towns along the country’s Pacific coast, despair and resignation have set in. “Ecuador simply […]

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Ecuador Earthquake: Tax Measures put into place to pay for devestation

BBC.com reported Left-leaning President Correa said all levels of society would be expected to contribute to rebuilding funds, even if they did not live in the worst-hit Pacific region. Among the measures he announced in a televised address late on Wednesday: The sales tax is to be increased from 12% to 14% for one year […]

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Ecuador Earthquake: President Correa institutes tax measures to help rebuild

CNN.com reported In an effort to boost reconstruction efforts, Ecuadorian President Rafael Correa announced a series of financial measures, including a tax increase, on prime time television. “Rebuilding the affected areas will take years and cost millions of dollars,” he said. “The short term costs are significant.” He announced a raft of short-term and one-time […]

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Ecuador: Financial Toll could reach 3 billion dollars from Earthquake

abcnews.go.com reported…. While the human tragedy of Ecuador’s most-powerful earthquake in decades is still sinking in, the government is just beginning to evaluate the monumental task of rebuilding. President Rafael Correa says it could cost as much as $3 billion to rebuild. That’s about 3 percent of Ecuador’s gross domestic product. He told reporters Tuesday: […]

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Ecuador: New Tax Proposal to levy tax on those taking more than $1098 out of the country

ecuadortransparente.com reported new taxes proposed by the new project called Act Balancing Public Finances, sent yesterday, Wednesday, March 30, 2016, at about 10 pm to the National Assembly. It is established that the currency cash carry Ecuadorians and foreign citizens, adults who leave the country or minors who are not traveling with an adult, up […]

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Ecuador: Proposed tax increases on cigarettes, liquor, soft drinks may raise 300 million dollars

CRE.com.ec reported Government prepares project to raise taxes on cigarettes, liquor and sugary drinks Morona Santiago.- President Rafael Correa, said in his work report No. 467 that his government is preparing a package of reforms to cope with falling tax revenues. This includes raising taxes on cigarettes, alcohol and sugary drinks. They are 300 million […]

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Living in Ecuador is more expensive every day

Ecuador is more expensive November/2015 expreso.ec reported prices are growing twice in the United States almost every year since 2008 – CPI has dropped in the last quarter by the economic slowdown Living in Ecuador is more expensive every day. It is the citizens and business insight. But it is also what the figures reflect […]

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Misery Index: Ecuador ranks 73 out of 108 countries (CATO) as of 2014

CATO.org/Steve H. Hanke reported – Every country aims to lower inflation, unemployment, and lending rates, while increasing gross domestic product (GDP) per capita. Through a simple sum of the former three rates, minus year-on-year per capita GDP growth, I constructed a misery index that comprehensively ranks 108 countries based on “misery.” Below the jump are […]

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Ecuador’s oil troubles worse than other oil exporting countries (opinion)

Steve St. Angelo, SRSRocco/silverdoctors.com: There’s an ongoing catastrophe taking place in Ecuador. Not only has a significant part of the Amazon been polluted by toxic waste oil left behind from the wonderful folks at Texaco when the company started drilling for oil in Ecuador back in the 1970’s, but the low oil price has totally […]

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Brazil: Financial Crisis Prompts City Governments to Cut Funds for Carnival

Folha de São Paulo reported the decision of many local governments in Brazil to cut public funding for Carnival this year. Due to the economic crisis currently unfolding, there are at least fifty-three cities across the country that have decided to make major cut backs or de-fund entirely the two-week national holiday. In Minas Gerais […]

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Ecuador Public Debt is at sustainable level per manager of Central Bank

(Prensa Latina) The public debt of Ecuador is at sustainable levels, as 33 percent of the Gross Domestic Product (GDP) is still below the limit established by the Constitution, explained today the manager of the Central Bank, Diego Martinez. The respect to the limit imposed in the legislation approved in 2008 was something the oficial […]

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Ecuador, Colombia, Venezuela selling crude below cost of production

reuters.com reported a more acute crude price slump this month has put several South American countries in the difficult position of selling oil for less than what it costs to produce, according to traders and sources at three companies in Colombia and Venezuela. So far, the most affected crudes are blends formulated with naphtha and […]

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Ecuador: Lowest unemployment rate in the region says national survey

telesurtv.net reported Ecuador’s unemployment rate was the lowest in the region, according to a new figures released by the National Survey of Employment and Unemployment. At only 4.8 percent, Ecuador has the lowest unemployment rate in Latin America, considerably lower than its neighbor Colombia, which has an unemployment rate of 9 percent, according to the […]

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Ecuador’s country risk one of highest in region due in part to collapse of oil prices

IRAN COMING INTO THE WORLD OIL MARKET TO PUT FURTHER PRESSURE ON OIL PRICES elcomercio.com reported the end of international sanctions against Iran, which became effective last Saturday (January 16, 2016), also assumes the termination of this nation oil embargo. Iran will play a decisive role in the energy market and expects to quickly increase […]

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Ecuador Begins 2016 with high debt, Correa asks creditors for patience

eluniverso.com reported the Government had a floating debt of $ 2,456 million at December 31, 2015. The regional governments, as well as manufacturers, service providers, teachers, are the sectors most affected them this debt. That can be seen with the figures registered by the Ministry of Finance. According to this Ministry, the government accrued (billed […]

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Venezuela Declares Economic, Financial Emergency for at least 60 days

Expreso.ec reported the president of Venezuela, Nicolas Maduro, the economic emergency decreed yesterday in Venezuela, giving it full powers to legislate in this area for 60 days. The move comes amid the worst crisis of the past 35 years. With a barrel of oil declining, with a paralyzed private productive apparatus because of the lack […]

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Ecuador: Remittances from abroad down due in part to depreciation of euro

Giovany Astudillo/elcomercio.com reported Ecuador received US $ 1 742.1 million between January and September 2015, according to a report by the Central Bank of Ecuador. This represents a reduction of 112.8 million over the same period of 2014. In the first nine months of that year arrived US $ 1 854.9 million. The main cause […]

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Ecuador: Inflation for 2015 declined to 3.38 percent

plenglish.com reported: Inflation declined in Ecuador in 2015 to 3.38 percent – Cuenca had highest reported increase in Ecuador Prensa Latina Ecuador’s inflation declined in 2015 to 3.38 percent, according to a report by the Consumer Price Index (CPI) today. The National Institute of Statistics and Census (INEC) published the report contrasts the information with […]

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Venezuela: President places limits on power of national Assembly over Central Bank

bbc.com reported Venezuelan President Nicolas Maduro has limited the National Assembly’s powers over the Central Bank. President Maduro approved the changes on Wednesday, but it only became public on Monday. The president will now no longer need legislative approval to hire and fire Central Bank directors. The change was announced shortly before a new assembly, […]

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Bartering big business in depressed Venezuela

mcclatchydc.com reported Venezuela’s grinding economic crisis has generated a plethora of problems including triple-digit inflation, shortages of basic goods and massive lines at markets. But it’s also inspiring boot-strap solutions, including a growing number of bartering websites for desperate shoppers. More than 14,000 people are following the Twitter handle @spvzla where medicine is traded and […]

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Battle over Antartica

nytimes.com reported on a glacier-filled island with fjords and elephant seals, Russia has built Antarctica’s first Orthodox church on a hill overlooking its research base, transporting the logs all the way from Siberia. Less than an hour away by snowmobile, Chinese laborers have updated the Great Wall Station, a linchpin in China’s plan to operate […]

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Sinactraho, Mexico’s union to defend rights of domestic workers

bbc.com/ “Conditions for women who work in homes in Mexico are very precarious,” says Marta Leal Morales, general secretary of the newly-formed National Union of Domestic Workers (Sinactraho). “We decided that this union would be to defend the rights of domestic workers, so they could have a better quality of life.” According to the country’s […]

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Latin America’s Commodity Exports to China to Slow Sharply

qz.com reported since the start of the millennium, Latin American economies have thrived, as China’s expanding factories bought boatload after boatload of oil, copper, and other raw materials. But Latin America’s commodity exports to China will slow sharply in coming decades, according to a study released Dec. 11 by three international bodies. And that will […]

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2016 will be difficult year for Latin America, Stratfor report

businessinsider.com/ Stratfor – reported low commodity prices and rising US interest rates, which affect currencies, will also spell another difficult year for much of Latin America. The threat of impeachment will hang over Brazilian President Dilma Rousseff and further sour the investment climate in Brazil in the short term. Argentina may have a new, reform-minded […]

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U.N. South America economy to contract 0.8 percent, Central America to expand

South America to contract 0.8% and Central America will expand 4.6% in 2016, says UN office mercopress.comLatin American and Caribbean economies will contract 0.4% on average in 2015 and will grow just 0.2% next year, as a result of the complex external scenario, according to new projections unveiled on Thursday by the UN Latin America […]

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Oil Company to invest 4.9 billion in Ecuador to increase oil production

(Prensa Latina) The multinational French Oil company Schlumberger will invest 4.9 billion dollars to increase crude production in a bloc operated by state company Petroecuador, reporte dan official source. In a communique of the Republicâ�Ös Vicepresidency, the agreement signed in presence of Vicepresident Jorge Glas, states that in order to achieve that target, the foreign […]

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Ecuador: 650 Million Dollar Bond paid according to President Correa

Rueters.com reported…Dec 15 Ecuador has fully repaid its $650 million Global 2015 bond, President Rafael Correa said, despite the OPEC member’s squeezed finances due to the tumble in oil prices. “We’ve just sent 650 million (dollars) to pay the entire 2015 bond,” Correa said on Twitter near midnight on Monday. “First time in history,” he […]

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$20 U.S. note most popular counterfeit bill in Ecuador

eluniverso.com reported a precise figure for the number of counterfeit notes detected in the commercial sector is not available, however, the Central Bank of Ecuador reports that between January and October this year 20,658 species falsified in Guayaquil, which were reported by the financial system were recorded . In 2014, in the city they totaled […]

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Strafor analysis for Ecuador

Strafor.com analysis Ecuador – The Ecuadorian legislature’s decision to remove presidential term limits and bar President Rafael Correa from running in the 2017 election will force the ruling Alianza Pais party to choose a new, lesser-known candidate to compete against the opposition. If oil prices continue to fall, Ecuador will have to cut government spending […]

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Not an Opportune Time to Invest in Latin America

seekingalpha.com reported…Latin American economies are currently faced with a multitude of headwinds. Tighter U.S. monetary policy is cutting off growth, while a general global slowdown is harming commodity prices. With the many problems Latin American countries face, shorting ILF could be a profitable strategy as the Fed begins to hike rates. Read Article

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A look at why dollarization has been good for Ecuador

Lawrence H. White wrote…In the late 1990s, as the Banco Central de Ecuador rapidly expanded the quantity of its currency–the sucre–prices denominated in sucres soared into hyperinflation. In response, Ecuadorians spontaneously adopted the U.S. dollar as a far safer savings vehicle, a far less chaotic pricing unit, and a far more reliable medium of exchange. […]

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Is there a future for Ecuador beyond President Rafael Correa?

ROGER F NORIEGA Since taking office as a maverick outsider nearly nine years ago, Ecuadorian President Rafael Correa has transformed the country by centralizing economic and political power under his authority and suppressing potential opponents in the private sector, media, and civil society. He has implemented a costly populist agenda, which has bolstered his popularity—initially […]

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