The Greenback Looks Like Good Medicine

Ditching the sucre has turned around Ecuador's economy

For Julio Litardo, a 40-year-old banana trader from Ecuador's coast, dollarization was a painful but necessary step. "Everybody knew it was the right way to go," he says. When converted from sucres to dollars at the fixed exchange rate of 25,000 to 1, the money Litardo makes from selling bananas doesn't add up to much. But at least now inflation isn't burning a hole in his pocket. "In spite of all the traumas, it's working out okay," he says.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.