Picking the dollar over the local currency for economic stability: Zimbabwe and Ecuador offer lessons and warnings for Argentina as it considers ditching its embattled local tender in favor of the greenback.
From Zimbabwe 's capital Harare to Quito in Ecuador , green bills circulating on the streets and in shops with images of U.S. presidents reflect a big choice that has been made: picking the dollar over the local currency to bring economic stability .
The two countries offer a lesson - and warnings - for Argentina, the latest nation globally to toy with the idea of ditching an embattled local tender in favor of the greenback, a signature campaign pledge of Dollarization or the part-way option of a peg to the dollar have generally been triggered as a last-ditch option to tame hyperinflation and loss of confidence in the local currency, as was the case in the 1990s with crisis-ridden Ecuador and in El Salvador in the aftermath of civil war. Zimbabwe abandoned its currency in 2009 to combat hyperinflation, opting for a multi-currency system centered on the U.S. dollar
Zimbabwe Ecuador Argentina Currency Dollarization Hyperinflation Economic Stability
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