Section » Economy

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 of foreign currency and hyperinflation, the government seeks to turn the situation to expand its powers.

The newly appointed Economy Minister Luis Salas, in a televised speech read the content of the decree, a series of measures, the general majority, preceded by a long preamble that identifies the death of the leader of the self-styled Bolivarian revolution, Hugo Chavez, the origin of the catastrophe in Venezuela, called “economic warfare” by the Chavez narrative.

Among these decisions they are: a) the Government may reshuffle the budget to his knowledge; b) establish measures to prevent tax evasion; c) expedite the processing for import products and supplies needed for consumption; d) exchange exempt from requirements-in Venezuela there is a sale of control very rigid currency since 2003 the public and private sector; e) require the increased production and could dispose of assets that private businesses have. What caught our attention is the possibility that revenues and maximum expenses for cash transactions in local currencies be established. The mere possibility that the Government is authorized to impose a playpen (a restriction on economic and financial transactions taxes in Argentina and Greece in the past) was perhaps the most shocking of all. Read Article

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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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Blueprint to fix economy as Ecuador prepares for a future without Correa

A DEEPER INSIGHT INTO THE CULTURE OF ECUADOR – READ THIS BOOK latinvex.com/Analytica report: Credible media reports say that president Rafael Correa, conscious of the depth of the recession, would prefer not to have to deal with it under his leadership – hence his announcement not to run in 2017. So do some of his […]

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Ecuador: Due to complaints, e-invocing platform moves offline for SRI

eeiplatform.com reported…As a response to complaints that online government approval of e-invoices was slowing down shipments and supply chain processes, Ecuador recently announced that it is reversing its approval model – now providing a 24-hour buffer for companies to submit e-invoices. As the SRI (Ecuador’s tax authority) begins rolling out this new model, here’s what […]

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Nicaragua: Inter-Oceanic Canal Project put on hold

theguardian.com reported the world’s biggest canal project – a $50bn inter-oceanic canal through Nicaragua – has been delayed, following an environmental report and a collapse in the fortunes of the Chinese businessman behind the company that planned to build it. The Hong Kong Nicaragua Development (HKND) Group announced on Wednesday that it would be another […]

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Ecuador Soccer Players go on strike – unpaid salaries

zeenews.india.com reported – The association has decided “to suspend all activities related to Ecuadorian soccer”, announced AFE. Ecuador’s Footballers’ Association (AFE) declared on Thursday it will go on strike in support of its members who have not been paid for between four and five months in over a dozen clubs. The association has decided “to […]

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Ecuador Crisis: Some citizens worried bad times of 1990’s returning

NPR.ORG – Ecuador’s economy is faltering thanks to a year of record low oil prices and fears of a “godzilla” El Niño forming in the Pacific Ocean. The situation is drawing bizarre parallels to the last major financial crisis to hit the small South American country in the late 1990s. KELLY MCEVERS, HOST: People in […]

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Low Oil Prices, Rising Dollar, Ecuador caught in the middle

CAROLYN CUI, MANUELA BADAWY The Wall Street Journal REPORTED….Two of the most punishing trends in emerging markets are the rising US dollar and falling oil. And caught between them is Ecuador. The South American country has the misfortune to be an oil producer with a “dollarised” economy that uses the US currency as legal tender. […]

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Ecuador uses virtual currency (Sucre) to transact some commercial transactions with ALBA countries

telegrafo.com.ec reported… Ecuador transacted by $ 2,673.9 million in Sucre Transactions of the export sector of the country and importer with the Single System of Regional Compensation (Sucre), the virtual currency of the Bolivarian Alliance for the Peoples of America (ALBA), totaling $ 2,673.9 million since July 6, 2010 to November 10 this year, with […]

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Ecuador: Banana producers face increased competition from other L.A. countries

freshplaza.com reported there is currently a worldwide oversupply of bananas. Traders in Europe, Russia and the U.S. pointed out that prices are low due to a large supply. In China, prices fell because of a large domestic crop and increased imports. In Latin America, several countries started producing bananas, creating new competitors for Ecuador. In […]

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Ecuador: Inflation rate end of Oct. 2015, 3.48 percent

Reuters.com reported/ (Reporting by Alexandra Valencia; Writing by Girish Gupta) – Ecuador’s inflation rate fell to 3.48 percent in the 12 months to the end of October compared to the same period a year earlier, the government’s statistics agency said on Monday. Consumer prices were down 0.09 percent from September, the agency added. Ecuador closed […]

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Ecuador: A look at cost of living

tribeler.com/expreso.ec reported…Prices began to rise in Ecuador, according to Central Bank figures, in September 2013 and reached their highest peak in June 2015 (4.87% annual inflation), even with safeguards in effect, import quotas and technical standards, which also contributed to the upward trend in production costs. Since then, the trend has been downward, accumulating two […]

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Ecuador is at a Crossroads, stability far from assured

FT.COM reported Ecuador is at a crossroads. Lavish spending by a leadership not afraid to augment high oil revenues with extra debt has done much to improve living standards. Public spending has almost doubled from 24 to 44 per cent of GDP since Rafael Correa assumed the presidency in 2007. And with a 50 per […]

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Ecuador: Hit by the fall in oil prices, economy will grow just 0.4 percent in 2015

reuters.com reported Ecuador has now slashed its growth projections twice this year, from 4.1 percent originally and 1.9 percent mid-year. The South American nation’s dollarized economy means it has been hard hit both by the tumble in commodities prices and the appreciation of the U.S. dollar. First elected in 2007, Correa has faced protests this […]

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Ecuador: Push is on to have more national products on shelves by 2017

telesurtv.net reported – A cultural shift is underway in Ecuador, so that consumers trust buying Ecuadorean products. Production fairs put on by the government allow citizens to learn more about products of medium and small scale producers, so that when they go to the supermarket the recognize the products, and want to buy local. “The […]

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Ecuador to Enforce Tougher Controls for Contraband at border with Colombia

The Ecuadorian government announced it will enforce tougher controls against contraband activity at the border with Colombia. The proposed action announced by Ecuador President Rafael Correa included stricter taxes on imports which arrive over land and higher gas prices for vehicles with foreign license plates. These controls are an attempt to reduce the effects of […]

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Ecuador: Child Labor Reduced 13% over a decade

telesurtv.net reported the period that knew the greatest reduction of child labor rates is 2007-2010, stated the U.N. body. ​The number of working children under 15 years old has dropped in Ecuador from 15 to 2 percent in over a decade, the National Institute of Statistics and the UNICEF revealed during the presentation of a […]

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Ecuador: President Correa announces country losing money on each barrel of oil sold

AP/Maria Jose Sanchez wrote Ecuadoreans are already contending with a rumbling, ash-spewing volcano and rising living costs because they use the appreciating U.S. dollar as their currency. Now they’ve been told that Ecuador’s oil — its principal export and a vital source of government funding — costs more to produce than it earns. President Rafael […]

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Ecuador: Research indicates middle class almost doubled to 27 percent in last decade

The Ecuadorian middle class rose nearly doubled in 10 years rose from 14% to 27% Consumption in malls, walled housing and tertiary studies define people in this stratum. The political aspirations between Guayaquil and Quito are different. telegrafo.com.ec reported research by INEC (National Institute of Statistics and Census) in 2011. Senplades data even speak of […]

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Ecuador: Drop in oil price, forces govt to find $800 million in cuts of non-essential projects

telesurtv.net reported a drop in the price of oil has forced the Ecuadorean government to find US$800 million in savings from “non-essential” works and projects. A US$800 million cut to Ecuador’s national budget will not touch government social programs or decentralized governments, Finance Minister Fausto Herrera has confirmed. Speaking on Saturday, on Citizen’s Link, Ecuador’s […]

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Ecuador: Public Sector Bloated from 35 % to 44% of GDP During Correa’s tenure (Opinion)

panamapost.com/Oswaldo Toscano – The Ecuadorian government has circumvented civil society and placed all planning in the hands of a political elite. The ruling party‘s socialist plan couldn’t have unfolded under more favorable conditions. A second boom in oil prices allowed the Ecuadorian government to roll out a model based on insatiable state spending and interventionism. […]

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Consultant group reports Ecuador Global Leader in turning oil into growth for citizens

elciudadano.gob.ec reported “The Boston Consulting Group” an international consulting firm, revealed that Ecuador is the global leader in turning oil wealth into growth and welfare for citizens, according to World Bank data, 46 oil-producing nations. The results of this report were presented in the Positive Ecuador section of the 437 Weekly Report from Pimampiro. The […]

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Ecuador: What will occur in Ecuador? the date is December 2015 (Opinion)

jornada.unam.mx /(Opinion) Joan Martínez Alier professor of economics and economics history at Autonomous University of Barcelona wrote in an opinion piece… The Correa government is heading down a path of repression. To sample the August 13 police arrested, mistreated and announced the deportation of Manuela Picq, Brazilian journalist and partner of Carlos Pérez, leader of […]

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Ecuador: S & P cuts credit ranking of Andean country, oil prices sapping revenue

Bloomberg.com reported Ecuador’s credit rating was cut one level by Standard & Poor’s as falling oil prices sap government revenue and increasing political unrest limits officials’ ability to implement economic policies. S&P lowered the country’s long-term sovereign rating to B, five levels below investment grade, from B+, the company said today in a statement. The […]

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Venezuela: Law of the Jungle takes over in search of groceries, desperation showing

panampost.com reported it’s the law of the jungle in Venezuela, as shopping for groceries becomes an increasingly dangerous activity. As the shortage crisis worsens, more and more angry mobs are raiding the nation’s supermarkets, looting whatever basic goods they can find. During the first half of 2015, the Venezuelan Observatory for Social Conflict (OVCS) registered […]

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Bank of America suspending international wire transfers to and from banks in Belize

cuencahighlife.com reported Bank of America announced on July 28 that it was suspending international wire transfers to and from banks in Belize. Bank of America said it is exploring other options for transferring funds to Belize but didn’t provide details. The reasons for the suspension of service, the bank said, was to comply with the […]

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Ecuador: New Virtual Currency is concern to some

Miamherald.com/Jim Wyss wrote: Authorities say the mobile money scheme is a way to offer financial services to those in remote areas where banks are scarce and to help jump-start small businesses. Skeptics, however, fear the system opens up a backdoor for the cash-strapped administration to shed the restrictions of its dollarized economy and, just perhaps, […]

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Ecuador’s Progress (Opinion)

To the Editor: FRANCISCO BORJA CEVALLOS Ambassador of Ecuador Washington Ecuador’s foreign and domestic policies are guided by our national values and interests, not games. That is how we reached all of our Millennium Development Goals and from 2007 to 2015, reduced poverty to 25.5 percent from 37.6 percent; extreme poverty to 8.6 percent from […]

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50,000 Ecuadorians return to home country under Plan Kukayo

telesurtv.net reported the 1999 financial crisis forced over 2 million people to migrate from Ecuador. Initiatives like Plan Kukayo look to restore their confidence in the country. In the Carcelen neighborhood of north Quito, Ana Isabel Gonzalez and her family make clothing and customize embroidery. But back in 1999, the financial crisis forced Ana to […]

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Ecuador: Annual Inflation Rate rose to 4.8 percent June 2015

Reuters reported that the annunal inflation rate is up to 4.8 percent in June. May reported an inflation rate of 4.55 percent. Consumer prices according to the government inreased 0.41 percent for June in comparison to 0.18 in May of 2015. The government uses as a measuring tool a modified basket of 60 products to […]

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Venezuela: Price of Tampons cost third of women’s salary at minimum wage

blog.panampost.com reported…Last month, both Venezuelan men and women were shocked to find out the new prices of tampons, sanitary pads, and other personal hygiene products set by the national government. Overnight, sanitary pads went from costing Bs. 70 (US$0.15 at the black-market rate) to Bs. 1,290 ($3, a 1,800 percent increase). To foreigners it may […]

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Ecuador: President Correa Promises U.S. dollar to remain currency

INFOBAE.COM reported Rafael Correa promised that while he is in power, this scheme will remain in E cuador , who took more than ten years ago after one of the worst financial crises in its history. “They all say again, as I am president, dollarization will continue. Enough of so many irresponsible rumors” Correa said, […]

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Brazil: Retail Sales Floundering

ft.com reported With consumer spending in Brazil floundering, it should probably come as no surprise that some of the biggest losers on the country’s stock market this year can be found in the retail sector. Cia Hering, one of Brazil’s largest clothing retailers, is the second second worst performing stock on the Bovespa index so […]

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Ecuador: Tourist from U.S. still missing after two years

Teenager from Oklahoma visiting Ecuador with his family disappeared on a hike in Banos Ecuador on Fathers Day 2013. August Reiger a teenager from the U.S. was visiting Ecuador with his family in 2013 after having graduated from high school. During a hike in Banos with his family he went ahead a short distance from […]

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Ecuador proposes bill to address concentration of wealth from land speculation

telesurtv.net reported this bill is the latest in a recent string of proposals put forward by President Correa aimed at addressing the concentration of wealth. Ecuadorean President Rafael Correa is submitting a bill to the National Assembly Monday aimed at targeting “illegitimate” capital gains from land speculation. “Any additional value that is not the result […]

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Ecuador: Urgent Economic Measure being taken with redistributing wealth

telesurtv.net reported new bill allows the inheritance tax to be paid via stock to workers of a company. A new bill put forward by Ecuadorean President Rafael Correa designed to redistribute wealth in the country was officially submitted Friday to the National Assembly. The bill targets the large transfers of wealth between family members, implementing […]

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Ecuador: All entities in financial sector obligated to join electronic currency system

panampost.com reported…While companies worldwide are embracing the rise of decentralized cryptocurrency bitcoin, Ecuadorian officials have chosen to make local banks adopt a home-grown state digital currency — whether they like it or not. The nation’s central bank has given them 360 days to get on board, with a mandate in Resolution 064-2015-M, released on May […]

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Ecuador targets the wealthiest with new inheritance tax

telesurtv.net reported that president Rafael Correa insisted that the new inheritance tax will not affect the middle classes nor the underprivileged, but only “the wealthiest.” President Rafael Correa has outlined a new inheritance tax bill, soon to be introduced to the National Assembly, which would introduce a 2.5 percent percent tax on inheritances of US$35,000-70,000. […]

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Ecuador: Banks mandated to offer services tied to electronic currency

bloomberg.com/Nathan Gill reported that Ecuador, which uses the U.S. dollar as its official currency, will require banks to offer services tied to a government-created electronic coin. Banks with assets larger than $1 billion will have to make the services available within 120 days. Smaller institutions (banks) will have up to a year to make the […]

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Foreign investment in Ecuador grew 6% in 2014 while in Latin America it fell 16%

andes.info.ec reported that Foreign Direct Investment (FDI) grew 6% in Ecuador in 2014 in comparison to 2013, amounting to 774 million dollars, a tendency contrary to what was evidenced in the region with a 16% fall, according to a report of the Economic Commission for Latin America and the Caribbean (Cepal for its acronym in […]

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Ecuador: With lower oil prices, taxation now accounts for more than 50 percent of income

telesurtv.net reported in his annual address to the nation Sunday, President Rafael Correa lauded the achievements and advances for workers during the previous year’s administration despite the massive drop in oil prices. In response to the fall in the international price of oil – an important source of income for Ecuador – the government implemented […]

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Ecuador: President says opposition deliberately trying to provoke problems

telesurtv.net reported Ecuadorean President Rafael Correa said the opposition is deliberately trying to provoke problems in the country by spreading rumors. Ecuadorean President Rafael Correa denounced efforts by the opposition in his country to copy the strategy of the opposition in Venezuela and try to destabilize his government and the country. “Let’s not fool ourselves, […]

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Ecuador: Shortage of $1, $50, $100 bills (Opinion)

OPINION Walter Spurrier Baquerizo/opinion/eluniverso.com / machine translated No $1, $ 50 or USD 100 bills in market The authorities explained that no dollar bills because they wear quickly, replace costly and there are coins of the same denomination. Valid arguments. What materializes is not the central bank does not care bills USD 50 or USD […]

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Ecuador: President of Banco Pichincha rules out Bank Holiday

telegrafo.com.ec / Antonio Acosta, president of Banco Pichincha, said the Ecuadorian financial system does not cross no crisis for with $ 25,600 million in deposits and a return that exceeds 12 percentage points is stable. Acosta, who was speaking in the context of an agreement with UN women for gender empowerment in the financial system, […]

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Venezuela: How to Stand in Line

bbc.com reported a combination of woeful economic management – or mismanagement – and the steep fall in oil prices has left the government with a serious cash flow problem. And it’s left the people of Venezuela standing in queues across the country every single day, often for hours at a time. People are given time […]

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Venezuela receives $5 billion financing package from China

bbc.com reported Venezuela has received $5bn (£3.4bn) in financing from China, Venezuelan President Nicolas Maduro says. The money was for “development”, he said on Sunday, but gave no details. The announcement comes three months after Mr Maduro travelled to China – a major investor in the region. Read Article

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Latin America’s Ranking Corruption by Transparency International (2013)

TrhansThe Corruption Perceptions Index 2013 serves as a reminder that the abuse of power, secret dealings and bribery continue to ravage societies around the world. The Index scores 177 countries and territories on a scale from 0 (highly corrupt) to 100 (very clean). No country has a perfect score, and two-thirds of countries score below […]

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Ecuador, will the good times last?

aljazeera.com/Harris Whitbeck – The money fuelling Rafael Correa’s popular presidency might be running out as oil prices show no signs of recovering. The first time I returned to Ecuador after several years, I was impressed by the astonishing rate of public investment that was clearly everywhere. A gleaming new airport has replaced the drab 1960s […]

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Ecuador looking to improve tax regulation

telesurtv.net reported the government of Ecuador is looking to improve tax regulation and facilitate the cancellation of debt for businesses and individuals. With the objective of improving tax regulation and helping businesses and individuals cancel outstanding debt, the government of Ecuador is putting forward the “Organic Law of Interest Remission, Penalties and Surcharges on National […]

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Ecuador expands market for investment from China

Chinese companies are welcomed to invest in Ecuador to help improve the country’s infrastructure and boost its economy, said Ecuador’s ambassador to China. The bilateral relationship has experienced its fastest development in recent years, with more Chinese companies expanding their businesses in the Latin American country, said José María Borja, the ambassador. Ecuador’s largest hydropower […]

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Ecuador’s economy slows for a third year

bloomberg.com reported tThe rate of growth in Ecuador, South America’s seventh biggest economy, slowed for a third year in 2014 as falling crude oil prices and a refinery shutdown offset gains from higher fishing and electricity output. Gross domestic product rose 3.8 percent in 2014 from a year earlier, less than the government’s 4 percent […]

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Ecuador: Minister forecasts strong growth despite oil price decline

WSJ.com/Mercedes Alvaro reported Ecuador’s Minister Coordinator for Economic Policies Patricio Rivera says the government isn’t planning new budget cuts despite the fall in oil prices and the appreciation of the U.S. dollar. In January, President Rafael Correa’s government announced a $1.42 billion cut in public spending, equivalent to 4% of its fiscal budget, due to […]

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Ecuador returning to bond market to raise money to plug larger budget gap

reuters.com reported Ecuador’s determination to keep coupons below 8% is forcing it to target a short maturity as it markets a new bond offering to international investors, according to a source familiar with the situation. The oil-exporting nation, rated B3/B+/B, hopes to raise at least US$1bn through the sale, which will help plug a widening […]

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Ecuador initiates another phase of electronic currency

elcomercio.com reported users of the 9285 accounts of electronic money that were enabled since last December 24 can make transactions from Friday February 27, 2015 at 200 points between pharmacies, restaurants, supermarkets and banks. This is the second stage of the financial system of electronic money the Central Bank carried out with 75 macro agents […]

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Ecuador to implement measures to curb economic impact of oil price drop

WSJ.com/Mercedes Alvarado / President Rafael Correa said Ecuador will implement measures to curb the economic impact of the drop in oil prices and the stronger U.S. dollar, two events that private-sector economists say will hurt growth this year. “We are taking all measures needed to be prepared. A good economic policy is to make the […]

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Ecuador: Minister of Foreign Trade demoted

aimdigital.com.ar reported Diego Aulestia today was named Minister of Foreign Trade of Ecuador, replacing Francisco Rivadeneira, according to reports from the website of the Presidency of the Republic. The institution said it also was named Maria de los Angeles Duarte as head of the Ministry of Urban Development and Housing. By Executive Decree refusals to […]

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Venezuela launches new currency exchange system

infobae.com reported a new exchange system took effect today in Venezuela. This is the System Marginal Currencies (Simadi), announced last week by the government of Nicolas Maduro . According to the text published in the Official Gazette, the retail market includes “forex trading in foreign notes, travelers checks or currency transfer through natural persons as […]

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Ecuador rolling out Electronic Currency

cnbc.com/ Everett Rosenfeld wrote…. In 2000, Ecuador moved to ditch its stumbling currency for the U.S. dollar. Now more than 15 years later, the South American country is revamping its monetary system again—using digital currencies. Ecuador’s Sistema de Dinero Electrónico (electronic money system) kicked off in December by allowing qualifying users to set up accounts, […]

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Ecuador: Economist defends dollarization, concerned over national digital currency

Ecuador’s prospects/ Dr. Larry White -Professor of Economics at George Mason University./ freebanking.org December 4th, 2014 While we celebrate Ecuador’s fifteen years of success with dollarization, and think about extending it, we must take note of two dark clouds on the horizon. First, Ecuador still has a central bank. Although the BCE is presently precluded […]

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Foreign Investment Down 14% In Latin America for 2014

expreso.ec reported the flow of Foreign Direct Investment (FDI) to Latin America fell in 2014 by 19% and amounted to 153,000 million, according to the latest study by the United Nations Conference on Trade and Development (UNCTAD). FDI fell after four years of increases, which is mainly, according to UNCTAD, declining 26 percent in cross-border […]

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Ecuador announces 1.5 million people lifted out of poverty

telesurtv.net reported Ecuador has made enormous social investments over the last eight years of the Correa government. The Ecuadorean National Secretariat for Planning and Development announced Friday that between 2007 and 2014, more than 1.5 million people had been lifted out of poverty in the South American country. These years coincide with Presdient Rafael Correa’s […]

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Ambassador states Ecuador should reduce dependence on dollar for trade

sputniknews.com reported Ecuadorian Ambassador to Russia Patricio Alberto Chavez Zavala stated that Russia and Ecuador should adopt financial mechanisms that will reduce their dependence on the dollar for international trade.”It is important for our countries to create new mechanisms of financial compensation, which would help us depend on the purchase of the dollar less in […]

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Ecuador: New receipt requirements on purchases of $20 and over

telegrafo.com reported: In January 2015, buyers of merchandise over twenty dollars will be required to provide their name and identification to sellers on the invoice. Previously, the threshold was $200. This new Internal Revenue Service requirement is issued under Executive Decree 539 and was published in the official record of 407. The purpose of this […]

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Ecuador: Consumer Price Index up 3.67% in 2014

WSJ.com reported Ecuador’s consumer-price index quickened last year to 3.67%, after increasing 2.70% in 2013, the government said Thursday. The increase was in line with the latest government forecast. The government of President Rafael Correa had originally estimated an increase of 3.20% in consumer prices for 2014, but it raised that to 3.67% in November. […]

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Ecuador: Minimum Wage increases 4.1 Percent

telesurtv.netThe minimum wage is increasing for 2015 by 4.1 percent, moving up to US$340. This makes it one of the highest in Latin America. As part of a larger state effort to expand workers rights, Ecuador’s minimum wage has risen by 4 percent for 2015. In 2014 the minimum wage was US$340 and increased to […]

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Ecuador: Tariffs Imposed on imports from Colombia, Peru

Reuters reported…. Ecuador imposed tariffs on imports from Colombia and Peru in a bid to shield its economy from cheap goods entering as a result of depreciating currencies in those two nations, while its biggest export is being hit by the slumping price of oil. The Andean nation, the smallest member of OPEC, will temporarily […]

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Ecuador: non-petroleum exports up sharply

Ecuador has signficantly increased exports of non-petroleum goods in the past year. telesurtv.net reported Ecuador has been increasing its exports of non-petroleum products, with a 17 percent increase in 2014 over 2014 according to the Ecuadorean Federation of Exporters (Fedexpor). Ecuadorean products well-known for their quality in international markets include bananas, shrimps, cacao, broccoli, flowers […]

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Ecuador: Pres Correa states 2015 to be “difficult” year

af.reuters.com reported President Rafael Correa began an official visit to China on Monday to seek additional credit lines. He has said 2015 will be a “difficult” year due to challenges such as the large expenditures still required to complete construction of several hydroelectric dams. Ecuador has cut its 2015 budget by 4 percent due to […]

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Ecuador: Why bond holders may be feeling concern

By Landon Thomas Jr./ NYTIMES.com There is no evidence, yet, that the government of Ecuador, which defaulted on its bonds in 2008, is having similar thoughts for the $2 billion worth of 7 percent bonds it sold investors last spring. But one might excuse bond investors that gobbled up the issue for feeling a bit […]

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Ecuador: President Correa says U.S. dollar is opposite of what country needs

telesurtv.net reported President Rafael Correa says the U.S. dollar is the “exact opposite” of what Ecuador needs. Ecuador’s use of the U.S. dollar is hurting the country’s economic growth, President Rafael Correa warned Monday. “Dollarization was a bad decision,” Correa said. The president said that in the face of low oil prices, Ecuador would benefit […]

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Ecuador: Minister of Economy states country will not be affected by drop in oil price

telesurtv.net reported the Minister of Economy of the oil rich nation explained that the country will not be affected because of the drop in oil price. The fall in oil prices will not affect Ecuador the Minister of Economic Policy, Patricio Rivera, said on Thursday. He added that Ecuador has several alternatives to address the […]

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Ecuador: New Labor Codes to set Maximum Salaries, prohibit discrimination

TELESURTV.NET reported new labor codes set maximum salaries, prohibit discrimination, and target precarious work among other aspects. The first aspect, based on the right to stable employment, makes labor contracts for indefinite time periods to avoid precarity. Moreover, the first aspect involves the creation of a new legal category: nullified termination of employment. Unlike the […]

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70 dollar price point for barrel squeezing lifeblood out of Venezuela

washintonpost.com reported Venezuelan oil, the lifeblood of the leftist revolution entrusted to Maduro by the late Hugo Chávez, was worth $97 a barrel then. Now it’s middling around $70, and with every dollar it dips, Venezuela’s export-dependent, popularity-challenged government loses $700 million a year. Read Article

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Caracas Venezuela: Shortages in stores and markets contributes to booming street sales

Washingtonpost.com reported authorities mostly turned a blind eye to the informal commerce, but late last month Venezuelan President Nicolás Maduro went on TV to decree a ban on street sales of coffee, eggs, shampoo and some 50 other “regulated” items whose prices­ are capped by the government. He ordered the National Guard to police market […]

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Ecuador: Trade Balance through Sept 2014, surplus of 500 million dollars

telegrafo.com.ec reported Ecuador’s trade balance was a surplus of $ 502.3 million as of September The trade balance for the period from January to September this year recorded a surplus of $ 502.3 million. Total exports in FOB value (in port) were $ 19,946.4 million, while imports amounted to $ 19,444.1 million. This result shows […]

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Ecuador: President Correa declares country no longer oil dependent

telesurtv.net reported Ecuador seeks to increase investment in public spending despite declining oil prices. During his weekly address to the nation, President Rafael Correa declared that Ecuador is no longer an oil dependent country. President Correa stated today that only 18 percent of total oil revenues would be allocated towards the budget for the fiscal […]

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Mexico: Basic Basket of Goods Inflation Rate Surges 5.10 percent annual rate

jornada.unam.mx reported…Mexico, DF.In October, inflation returned to exceed the goal of between 3 and 4 percent set by the Bank of Mexico to settle at 4.30 percent registered in the same month of last year. Monthly rate, i.e. compared with September of this year, inflation was 0.55 per cent. In both cases the inflation exceeded […]

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Ecuador: cutting some low-priority investments in oil sector due to lower prices

af.reuters.com reported Ecuador said on Tuesday it is cutting some low-priority investments in its oil sector to protect the South American OPEC country’s finances because of lower crude prices. “The cuts are for projects that don’t affect oil production, we’re not cutting investment for production, we’re cutting projects that aren’t priorities,” Finance Minister Fausto Herrera […]

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Ecuador: As oil prices fall can Correa sustain achievements of his “citizen’s revolution”?

blogs.ft.com / Andres Shipani/ Of the generation of radical Latin American leaders that have won office in the last decade, Ecuador’s Rafael Correa – perhaps best known internationally for sheltering WikiLeaks founder Julian Assange at his country’s London embassy – is among those with the most successful record. He has reduced poverty, promoted faster economic […]

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Peru Ranks 35 out of 189 countries for ease of doing business

andina.com.pe reported Peru ranked 35 among the 189 countries surveyed for the latest World Bank’s “Ease of Doing Business” report, being placed in the upper fifth of the ranking, Peru’s Ministry of Finance (MEF) announced. In addition, it was placed second among Latin American nations, just after Colombia that stood at 34, yet surpassing Chile […]

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Ecuador ranks 115 out of 189 countries for ease of doing business

doingbusiness.org/World Bank report..This page summarizes Doing Business 2015 data for Ecuador. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages. Region Latin America & Caribbean […]

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Ecuador: National Production up substantially, import substitution working

Favorable results of import substitution are occurring in Ecuador. telesurtv.net reported as part of a larger policy of import substitution to change the nation’s productive model, it has been revealed that Ecuador has managed to reduce imports of primary materials and other goods by US$1.7 billion dollars, since the beginning of this year. The reduction […]

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Peter Foster: The limits of Ecuador’s shakedown statism

Ecuador is run by the left-wing caudillo windbag Rafael Correa, whose hero was Hugo Chavez The great eighteenth century lexicographer and wit Samuel Johnson described second marriage as the “triumph of hope over experience.” How then might one characterize the tendency of Canadian mining companies to return again and again to the altar of commerce […]

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Central Bank of Ecuador launches mobile payment scheme

paymentviews.com reported Ecuador’s Central Bank has embarked on an ambitious course to launch an affordable and widely available mobile payment scheme. In fact, it will be the national wallet. With some uncertainty, it appears that Ecuador’s initiative may be the second central bank effort to enter this space. Jordan’s central bank has launched “JoMoPay”, but […]

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China’s increasing presence in Colombia, Ecuador, and Peru

LSE Global South Unit WORKING PAPER SERIES Strategies and Counter-strategies: China in the Andean Region of South America. By Ádam Chimienti and Benjamin Creutzfeldt. ABSTRACT . lse.ac.uk/ By employing a comparative method that analyzes China’s increasing presence in dierent Latin America countries, this study explores key features and implications of Beijing’s approach towards this region. […]

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