Dollarization In El Salvador

El Salvador is a small but beautiful country. El Salvador is located in North America, west of it is Guatamala and Honduras is north of it. It’s capital is San Salvador which is also the largest city in El Salvador. Santa Ana, San Miguel, and Zacatecoluca are also three majors cities.

Now El Salvador isn’t a strong economic country there isn’t really much of a police force or military like you would have in America where police waits to pull anyone over for a little thing. In El Salvador not many people had a car or even knew what driving was, the roads are narrow and if you’re by the mountains or outside the city. Then, the only way to travel was someone truck if they had one and rode in the back, a bus, bike, or simply walking. Now the major difference which got my attention was one day we went to the mall to buy some toys and I wanted this small Porsche so my grandmother decided to get me it. While we were walking out I shall this grown woman with her little boy on

Cultural Awareness of El Salvador When we think of culture, what is the first thing that comes to mind? Many of us begin to envision how certain people or countries carry themselves in their daily routines. Whether it is in the way they cook, dress, celebrate certain holidays, or just other beliefs in general. Picture a country that at one-point war was so bad and constant that is was normal for women to cook for soldiers who are passing by their homes. It isn’t frowned upon to have a corrupted government because that is something they have had to deal with since their independence, and children as young as the age of seven are militants walking around with weapons in their hands, becoming social terrors. At least during the 1980’s

There is perhaps no other political issue in our contemporary society that is more pertinent, pervasive, and encompassing than a nation’s economy. From the first coins used in Greece and the Asia Minor in the 7th century BCE, to the earliest uses of paper money, history has proven time and time again that the control of a region’s economy is absolutely crucial to maintaining social stability and prosperity. Yet, for over a century scholars have continued to speculate why the United States, one of the world’s strongest and most influential countries, has one of the most unstable economies. Although the causes of this economic instability can be attributed to multiple factors, nearly all economists agree that they have a common

The area that is currently El Salvador was originally comprised of 3 vast indigenous states and various territories. The Pipils, indigenous occupants who settled in present day Mexico, are a nomadic people that originated from Nahua. The Lencas settled and represented the eastern district while the Mayan the Chortis occupied the North zone of the Lempa Hi River.

The area that is currently El Salvador was originally comprised of 3 vast indigenous states and various territories. The Pipils, indigenous occupants who settled in present day Mexico, are a nomadic people that originated from Nahua. The Lencas settled and represented the eastern district while the Mayan the Chortis occupied the North zone of the Lempa Hi River.

“A weak currency is the sign of a weak economy, and a weak economy leads to a weak nation.” – Ross Perot. The words of the 1992 Presidential candidate still ring true today, and in fact they have since the abolition of the gold standard in 1971 by President Nixon. Ever since that warm August day the United States has been on a death plunge into immaculate amounts of debt. However, by the establishment of the silver standard in the way I will explain to you today, makes it clear that action on such a policy must be taken.

The history of El Salvador begins with the time period in which indigenous peoples resided in the country. According to Roy Poland, in Culture and Customs of El Salvador, El Salvador was conquered by the Spanish in 1524; the spanish found the country was divided into three states (13). The spaniards hegemonic influence finally converted El Salvador into a Spanish colony after twenty six years of indigenous resistance(Poland 14). Such conquest brought violence, diseases, and poverty to the indigenous people. The invasion of El Salvador by the Spanish also resulted in mestizaje, racial mixing. The colonial period lasted until 1821(Poland 14). El Salvador finally became independent from Spain in 1821 and joined the United Provinces of Central America in 1823; however, in 1840 El Salvador gained full independence (Eileen Garron Batres 6), One of the most important crops in El Salvador during the 1800’s and 1900’s was coffee; during the 1900’s El Salvador was the third largest coffee producer internationally (Susan B. Hecht).

El Salvador is the smallest country in Central America; most of the country is on a fertile volcanic plateau about 2,000 ft high. The people of El Salvador use the land for raising crops, building cities, and are very skillful weavers. El Salvador remained a Spanish colony for around 300 years. It was taken over by Europeans in the 1500’s. Before the Spanish conquest, which was an invasion from the Spaniards to the native people; one of the earliest groups of settlers was a group of indigenous people called the Pipil people. (World Book E6 252).

El Salvador, or Republic of El Salvador, is a densely-populated country in Central America. There are about 6 million people living in slightly more than 8,000 square miles, making it one of the most densely populated countries in the Western Hemisphere. It is the smallest country in Central America- slightly smaller than the size of the state of Massachusetts. El Salvador is mountainous- the main mountain range is the Sierra Madre. Other mountains in the country are volcanoes, some of which are still active today. The capital, San Salvador, the largest city in the country, lies about 30 minutes from the Pacific Ocean (El Salvador is the only Central American country without a Caribbean coast.)

In modern times the peso has endured more or less stable against the US dollar and other major worldwide currencies. Although the peso has come under pressure from international recession that is becoming obvious in Europe, One thing that is apparent from making a approximate study of the historical information is that the strength of a currency has a direct relationship with the strength of the economy. As is apparent from the economic disaster experienced by Mexico, during the 1970s and 1980s, which is why the Mexican peso is experiencing distress. As most of the Mexican economy produces its income from exports therefore, it is suffering from a deepening crisis in the global market. On the positive side, the future of the Mexican peso is

In 1977, the Guerilla, a group of rebels, started a wave of violence in El Salvador which included violating human rights and causing terror all over the country. Most of the political, social and economic problems in El Salvador arose once the people started fighting against the corrupt government. By 1980, the civil war erupted and the rebels took over the country with brute force. Finally in 1992, a treaty arranged between the rebels, Farabundo Martí National Liberation Front referred to as the FMLN, and the government, whose aim was to hinder the violence in the country, only made violence more prevalent. El Salvador’s civil war left problems that El Salvador cannot solve alone, which explains why it needs an international community to

Dollarization: A Comparison of Economic Policies in El Salvador and Other Nations Dollarization is the process in which nations “replace their domestic currencies [with foreign legal tender] …to obtain economic growth and stability” (Rivera-Solis 330). The US dollar is the most common choice of exchange in this practice, though the adoption of other first world states currencies may be entertained as well. Though its effects are not instant, US dollarization has brought many gradual benefits to the economic statuses of several countries. There are two types of dollarization: official and unofficial. In the process of official dollarization, a state gives complete monetary control to a foreign nation, ceding its right to both create a central bank and issue a domestic form of currency. Where as a nation loses its sovereignty to make decisions concerning its money supply in official dollarization, unofficial dollarization allows states to keep most of its control in place. Nations who implement dollarization unofficially keep their ability to own a central bank to fall back on, in cases of economic emergency, and regulate their own currency. Some studies encourage the promotion of official dollarization, while other scorn it’s outcome and option for its slighter counterpart, partial dollarization, instead. This paper explores the differences in both policies and the effects of dollarization on four separate nations: El Salvador, Panama, Zimbabwe, and the British Virgin

People think it takes little to fix things since it took little mistakes to bring Mexico’s economy down. The Mexican peso crisis started because of the U.S. influence towards Mexico’s currency. The U.S. dollar has a significant value, and after the huge increased it had during the end of the

On December, 1994 the government of Mexico announced the devaluation of its currency which was a surprise to the financial markets. Mexico had followed an “exchange rate policy of maintaining the peso within a well defined band against the US dollar” (Truman,1996.199). As the current account deficit rose this policy had come under pressure. The devaluation on December 20 fail to stabilize peso and two days later was forced to let it float, causing its external value to plummet.