Source link : https://theamericannews.net/america/ecuador/from-stability-to-scandal-how-ecuador-transformed-into-a-money-laundering-hub/
Dollarization in Ecuador: How the Safest Country in Latin America Became a Money Laundering Transnational Crime Hub
In the early 2000s, Ecuador made a bold economic move by adopting the U.S. dollar as its official currency, a decision hailed as a stabilizing force in a nation plagued by inflation and fiscal volatility. What was once marketed as a pathway to growth and stability, however, has taken a troubling turn. Over the past two decades, Ecuador has witnessed a surge in money laundering activities, transforming it from one of Latin America’s safest countries into a significant hub for transnational crime. This article examines the paradox of dollarization in Ecuador-how a strategy intended to safeguard the economy has instead unwittingly facilitated illicit financial networks. As criminal organizations exploit the vulnerabilities within the dollarized economy, understanding this complex landscape is essential for unraveling the implications for governance, security, and the future of Ecuador’s economic resilience.
The Transition to Dollarization: Economic Stability and Emerging Risks in Ecuador
The shift to dollarization in Ecuador was initially lauded for ushering in a period of relative economic stability. As the country adopted the U.S. dollar in 2000, it effectively curtailed hyperinflation and fostered confidence among foreign investors. This shift was seen as a safeguard against the economic volatility that had plagued the nation prior, enabling a more…
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Author : Ava Thompson
Publish date : 2025-07-12 06:34:00
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