Dollar counterfeiting: Peru is now world No. 1

[LAM]

Dollar counterfeiting: Peru is now world No. 1 - CSMonitor.com

 

[Big Smoothy]

I was in Peru recently, and every dollar changed was heavily scrutinized.

In neighboring Ecuador entire towns with many banks that were big banks refused to take 100s.

Ecuador uses the US Dollar by the way, which was a pain in the arse and made prices more expensive.

 

[LAM]

I was in Peru recently, and every dollar changed was heavily scrutinized.

In neighboring Ecuador entire towns with many banks that were big banks refused to take 100s.

Ecuador uses the US Dollar by the way, which was a pain in the arse and made prices more expensive.

I haven't been in central or south america since the 90's I was wondering how this was having an effect down there.

 

[Big Smoothy]

I haven't been in central or south america since the 90's I was wondering how this was having an effect down there.

Interestingly, Ecuador had a currency crisis in or around 1999. 60% annual inflation, etc. A new President in 2000 made the decision to dump the "sucre" and use the US Dollar. The rate was around 6,000 but the govt only paid citizens 2,000. About 7 months notice was given to switch. Lot of people lost their savings because of this.

Now, it's the greenback. The Sacajewia coin is widely used for 1 dollars and there are nickels and dimes.

This has caused prices to creep up.

The current President, Rafeal Correa says making the switch was a mistake because it prevents monetary policy, etc. But there are no plans to dump the USD.

Peru was cheaper than Ecuador. Not a lot cheaper but cheaper enough to notice. Bolivia was more affordable than Peru. Bogota was cool.

If I didn't like to chat in bars with cervezas at night I would have spend $25 per day total which = $750 per month.

 

[LAM]

Interestingly, Ecuador had a currency crisis in or around 1999. 60% annual inflation, etc. A new President in 2000 made the decision to dump the "sucre" and use the US Dollar. The rate was around 6,000 but the govt only paid citizens 2,000. About 7 months notice was given to switch. Lot of people lost their savings because of this.

Now, it's the greenback. The Sacajewia coin is widely used for 1 dollars and there are nickels and dimes.

This has caused prices to creep up.

The current President, Rafeal Correa says making the switch was a mistake because it prevents monetary policy, etc. But there are no plans to dump the USD.

Peru was cheaper than Ecuador. Not a lot cheaper but cheaper enough to notice. Bolivia was more affordable than Peru. Bogota was cool.

If I didn't like to chat in bars with cervezas at night I would have spend $25 per day total which = $750 per month.

yea that was a huge mistake, they should have kept their own currency and just pegged it to the dollar and let a national monetary authority handle the supply.