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

Posted on April 28, 2015 • Filed under: Economy, Ecuador

Walter Spurrier Baquerizo/opinion/ / 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 100; the supply of bills is reduced to three denominations: 5, 10 and 20. Go dollarization.

The explanation is that money is to make it difficult to be taken. But suppose someone traveling to Chile. You need some cash and want to save tax of 5% to use credit card, so you want to take thousand dollars. Instead of 10 100 BILLS you have to carry 50s to 20s. enter wallet. Chilean moneychangers punish the buyer with small bills. But certainly not going to take less.

Maybe it is believed that people cheat the Treasury by taking more money hidden permitted, which is complicated by what is now the lump is five times higher.

You may want to discourage the use of bills, so people pay by check or credit card and keep more deposits, which means more clicks on the Central Bank and the central more money can pay to the treasury. Or to adopt electronic money.

None of this justifies lock monetary transactions. In addition, authorities fed rumors fire.

The economy is going through difficult times. The authorities take measures discussed and debatable, but together and get nervous bother people:

-the Very broad restrictions on imports. Although authorities deny, climbing costs and generate scarcity. Ask those who are buying school supplies.

‘The Monetary Board took the lead on the fate of the money deposited in private banks, and not the bankers to whom we entrust our savings to them.

-The Promotion by any means of the use of electronic money, at the expense of the greenback.

-The President’s repeated statements that dollarization is harmful.

This is a breeding ground for the spread of the Government malquerientes by social networks alarmist versions of the economic situation. Such was the profusion of catastrophic rumors that the Superintendency of Banks came to belie, with a statement which reveals the good situation by passing the financial sector.

Now the Central gives more ammunition to those who spread rumors. Let it be said, for example, that no notes of 100 and 50 because people are hoarding.

The tranquility of the banking system is preserved through press, that what they get is alarming, because it is recognized that there is something to explain.


You want quiet financial markets? Take sensible measures to forward to the authorities think first depositors rather than micromanage our money with tax specialists purposes.

Therefore do not restrict imports. They do not put their hand to the bank liquidity. Do not force the use of electronic money. Do not speak ill of dollarization. And please, import bills. (O) Read Article

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