Central Bank of Ecuador
This is building in Quito houses the Central Bank of Ecuador.
Do you know what goes on here? Actually not much since Ecuador transitioned to using US Federal Reserve Notes (https://en.wikipedia.org/wiki/Currency_of_Ecuador#2000_Dollarization)
It's an interesting sight to see fed reserve notes floating around in commerce in a faraway land.
Yes I remember when traveling through Ecuador I was very surprised by their use of USD. I didn't like it as the CAD- USD exchange isn't in my favour 😆
I can't wait to have the Federal Reserve Notes, "Removed and Replaced"...
That's a lot of notes. They've also got coinage down here...
I hope all their Children have Full Piggy Banks... lol...
Oh, and guess who's paying the "interest" on their
use of Federal Reserve Notes...???
There is a lot of coinage floating down here as well. And the second point, clearly US citizens...
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This is a direct quote from Wikipedia:
Interesting dates they have. Their currency stopped being legal tender exactly a year before nine-eleven.... makes me wonder about things and my own sanity as I drift closer to getting a tin foil hat
Yes interesting dates indeed. The process began after the emerging market financial crisis that spread around Latin America. The connection to 9/11 is quite the coincidence..
Things like these make me want to dust my tin foil hat.
Did they had an agreement with US Government? How is the money supplied to Ecuador? How do they replace the old bills? I am just curious...
Yes I believe they have an arrangement with the Fed and IMF. Coins are minted and flown to Ecuador in jumbo jets. By old bills do you mean the previous sovereign currency (the Sucre)? I believe that was the last act of the Ecuadorian Central Bank - to take the old bills as deposit and convert to fed reserve notes. A shameful act if you ask me. The crisis preceding the dollarization was largely caused by politicians trained in USA and insistent on the Washington Consensus (https://en.wikipedia.org/wiki/Washington_Consensus) & (https://en.wikipedia.org/wiki/Jamil_Mahuad)
The old Dollar bills. In the US the banks receive them and send them to be incinerated by the Govenment. I think the same occurs in Ecuador, they send the old bills to US to be incinerated.
Ah yes, I will try to discover the answer for sure. But I think you are right that is the case in Ecuador as well. On the notes themselves it says property of the Federal Reserve so only they can lawfully destroy them or grant power to do so.
Reminds me of travelling in Cambodia where USD is accepted everywhere and even comes out the ATM machines. You have to be careful checking all bills in change, because the slightest tear or even dirty/scrunched notes got refused by vendors, cafes, taxi, bars etc and you'd be stuck with them until you reached a normal money exchanger ... nothing but mint notes would work on the street and known scam was taking crisp notes from tourists with broken notes as change to take out the country ....