Joe's 10 Step Plan To End The Blu Dolar

[ajoknoblauch]

Maybe Washington would agree to putting Evita on the $10.00

Not Cristina?

 

[Gringoboy]

This brings up something I have never understood: legally, logistically, etc., how and why does one country use another country's currency (e.g., Ecuador using USD as official currency) ? What is in it for the country that exports its currency to the other country? In the case of the U.S., does it bear the full cost of minting, supplying and continually replenishing this money? Is there a per dollar charge to the other country? Does this kind of arrangement imply some kind of political alliance other than merely a symbiotic relationship or pragmatic arrangement?

This is an interesting article, but the chances of 'Doing an Ecuador' here are virtually nil, although a week is a long time in politics.
http://www.usnews.com/opinion/blogs/eric-schnurer/2014/05/02/why-ecuador-and-other-states-dont-use-their-own-money

 

[ghost]

Not Cristina?

She would need to be dead.

 

[ajoknoblauch]

She would need to be dead.

Un-dead is insufficient?

 

[Joe]

What about a currency union between Venezuela, Cuba and Argentina. This could alleviate Venezuela's chronic shortage of toilet paper and Argentina would finally get a bill (and coins) with Che on it.

 

[Redbeanz]

This is an interesting article, but the chances of 'Doing an Ecuador' here are virtually nil, although a week is a long time in politics.
http://www.usnews.com/opinion/blogs/eric-schnurer/2014/05/02/why-ecuador-and-other-states-dont-use-their-own-money

Thanks, Gringoboy. The article was interesting, and it prompted me to do some research that answered my own questions. Ecuador pays the U.S. for the currency, including about $3 million each year to replace worn-out bills. They mint their own coins, which mimic those of the U.S.

This is another interesting article, about Ecuador's new electronic currency:
http://www.cnbc.com/id/102397137