Dollarization In El Salvador

Satisfactory Essays
The people of El Salvador have faced many hardships in recent years. From civil war, earthquakes to inhumane living conditions. In return forcing El Salvador to adopt the US dollar. Yet, this adoption wasn’t a move preventing economic decline but rather a move of strength. As stated by Juan Jose Daboub, the finance minister, “Salvador decided to dollarize to armor-plate its economy. It is an integral part of our reforms. [Dollarization] makes the changes permanent. [We have] a low fiscal deficit and a low level of debt. Dollarization reduces interest rates and increases [the economy's] predictability, which is a boost for investment” (Emmott, 2002). Juan Jose Daboub was in fact right about this plan of Dollarization in El Salvador. In great
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