Ecuador adopted dollarization in January 2000 following the catastrophic collapse of the sucre, which lost two-thirds of its value in 1999, falling from 6,825 to 28,000 per dollar, and enjoys approximately 90% approval today, making it the country’s longest-lasting currency regime since independence. Rafael Correa, who led Ecuador for a decade, publicly condemned dollarization while implementing policies to undermine it from within, including central bank lending to the treasury peaking at roughly 10% of GDP. Despite these efforts, Correa never dared to abolish the dollar due to its widespread popularity and proven economic benefits. As a result, Ecuador has remained immune from currency crises for 26 years while sustaining respectable economic growth, low inflation, and surging exports. For Latin American countries considering dollarization, the Ecuadorian experience demonstrates that the dollar delivers: stability and growth are inseparable.
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