Ecuador's default on USD 3.9 billion of international bonds means it's only a matter of time before the country drops the US dollar as its currency, Goldman Sachs Group Inc. says. Ecuador's use of the dollar gives President Rafael Correa no outlet for providing credit to the economy as access to foreign financing dries up and revenue from sales of oil, the nation's biggest export, tumbles. Correa, a critic of so-called dollarization, also may use the default as an excuse to abandon the policy, said Alberto Ramos, a Latin America economist with Goldman Sachs in New York. (Bloomberg)
Printing articles to share with others is a breach of our terms and conditions and copyright policy. Please use the sharing options on the left side of the article. Devex Pro members may share up to 10 articles per month using the Pro share tool ( ).
About the author
Devex Editor
Thanks a lot for your interest in Devex News. To share news and views, story ideas and press releases, please email editor@devex.com. We look forward to hearing from you.
