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  • Dec 19th, 2013 @ 1:17am

    Re: Re:

    Yes, Ecuador's government has to be very careful. Since they don't have a sovereign currency (they use the US dollar), they are especially vulnerable as they are unable to run their own monetary policy. President Correa says it would be too costly and would provoke chaos to try to establish a new national currency, but they are strong proponents in the Union of South American Nations of establishing a regional (South American) currency "in the medium term", which would need to include Brazil at least.

    There is the new Bank of the South, backed by Venezuelan oil, and there is the "Bolivian Alliance" (ALBA) trade bloc, not for "free trade" but for "mutually beneficial" trade.

    So we can expect Ecuador's economy to become more and more closely linked with its neighbours', and less so with the US and Spain and the West generally. That should help to improve Ecuador's sovereignty vs Western corporations and their governments.