|Coal tar oil|
Ecuador, officially the Republic of Ecuador is a representative democratic republic in northwestern South America, bordered by Colombia on the north, Peru on the east and south, and the Pacific Ocean to the west. Ecuador also includes the Galápagos Islands in the Pacific, about 1,000 kilometers (620 mi) west of the mainland.
The country's modern finance and banking system began in 1948 with the establishment of the Central Bank. The Law of the Monetary System of 1961 defined the functions of the Central Bank, which included issuing and stabilizing the national currency, providing credit to the private sector, managing foreign-exchange reserves, controlling import-export permits, carrying out the Monetary Board's policies, supervising private banks, and regulating international financial transactions. The bank also maintained a check clearinghouse, rediscounted and made advances to commercial banks, and published economic data. In 1989 the structure of the banking system resembled a three-tiered pyramid with the Monetary Board at the apex. The Bank Superintendence and the Central Bank occupied the next tier and lent funds to four state-owned financial institutions. At the bottom came the commercial banks, savings and loan associations, and finance companies, which operated at the local level.
The Monetary Board regulated the entire banking and credit system, including the Central Bank. In the 1980s, the board's eleven members included the chairman, appointed by the president of Ecuador, and the ministers of finance and credit; agriculture and livestock; energy and mines; and industry, commerce, integration, and fishing. Also included was the president of the National Planning Board, two representatives of the national chamber of commerce organizations, a representative of the commercial banks, the general manager of the Central Bank, and the head of the Bank Superintendence. The Monetary Board's functions included formulating the country's economic policy; determining interest rates; and setting Central Bank credit levels, minimum reserve requirements, and exchange rates.
|Agriculture||Bananas, flower, cocoa, sugar cane, rice, cotton, corn, palm & coffee.|
|Manufacture||Food processing, petroleum, textile, wood products & chemicals.|
|Services (Including financial)||59% (2013 estimate)|
|Banco Commercial do Ecuador||Banking|
|Banco del Pichincha||Banking|
|Coal tar oil|
The Stock Exchange of Quito, also known as Bolsa de Valores de Quito, is charged with continuing the economic advancement of Ecuador. It provides information on financial institutions and services within the country and acts to maintain and improve the financial market. Only available in Spanish. The Quito Stock Exchange ECU Index (Global) is a major stock market index which tracks the performance of companies listed on the Quito Stock Exchange and on the Guayaquil Stock Exchange in Ecuador. In law terms Bolsa de Valores de Quito has got two special relevant moments. The first one was related to its first foundation, which took place in 1969 as Corporation, as an initiative of Comisión de Valores – Corporación Financiera Nacional (as named at that moment). Twenty years later, in 1993, the new Capital Market Law, restructured Ecuadorian Capital Market establishing that exchanges should be transformed into nonprofit civil corporations. That’s why since May, 1994, the Exchange became Corporación Civil Bolsa de Valores de Quito, considering this fact as its second foundation.
In November 2008, Ecuador became the first country to undertake an examination of the legitimacy and structure of its foreign debt. An independent debt audit commissioned by the government of Ecuador documented hundreds of allegations of irregularity, illegality, and illegitimacy in contracts of debt to predatory international lenders. The loans, according to the report, violated Ecuador’s domestic laws, US Securities and Exchange Commission regulations, and general principles of international law. Ecuador’s use of legitimacy as a legal argument for defaulting set a major precedent; indeed, the formation of a debt auditing commission sets a precedent. In the 1970s Ecuador fell victim to unscrupulous international lending, which encouraged borrowing at low interest rates. But in over thirty years the country’s debt rose from $1.174 billion in 1970, to over $14.250 billion in 2006, a twelvefold increase, due in large part to interest rates that rose at the discretion of US banks and Federal Reserve from six percent in 1979 to twenty-one percent in 1981.
The commission revealed that Salomon Smith Barney, now part of Citigroup Inc., issued unauthorized restructuring of Ecuador’s debt in 2000 that lead to exorbitant interest rates, which, combined with illegal borrowing by former dictators, has turned the country, along with many of its Southern neighbors, into a major capital exporter to its Northern “benefactors.” Over the years, the country has made debt payments that far exceed the principal it borrowed. Of all loans made between 1989 and 2006, fourteen percent was used for social development projects. The remaining 86 percent was used to pay for the previously accumulated debt. Continuously from 1982 and 2006, the country paid foreign debt creditors $119.826 billion for capital and interest, while receiving over the same period $106.268 billion in new loans, which amounts to a total negative transfer of $13.558 billion. The human costs are staggering. Every dollar spent on illegitimate international credit means less is available for fighting poverty. In 2007 the Ecuadorian government paid $1.75 billion in debt service alone, more than it spent on health care, social services, the environment, and housing and urban development combined.
While the risks of default are high, Ecuador had only two options: keep paying a dubious and illegal debt at the risk of social unrest, or default and face the wrath of the international market. Under the World Bank system, which oversees investment treaties, there is no public accountability, no standard judicial ethics rules, and no appeals process. Ecuador has thus exposed a major problem in the international financial system: the lack of an international, independent mechanism for countries to resolve disputes over potentially illegitimate and/or illegal debt. Ecuador’s findings could set a precedent for the poorest of indebted countries, whose debt burden has long been criticized as predatory and inhumane. Ecuador has called on Latin America to forge a united response to foreign debt. Venezuela, Bolivia, and Paraguay have recently created debt audit commissions. The country has also asked the United Nations to help develop international norms to regulate the foreign debt market.
The territory was colonized by Spain during the sixteenth century, achieving independence in 1820 as part of Gran Colombia, from which it emerged as its own sovereign state in 1830. The legacy of both empires is reflected in Ecuador's ethnically diverse population, with most of its 15.2 million people being mestizos, followed by large minorities of European, Amerindian, and African descendants. On October 9, 1820, Guayaquil became the first city in Ecuador to gain its independence from Spain. The people were very happy about the independence and celebrated, which is now Ecuador's Independence Day, officially on May 24, 1822. The rest of Ecuador gained its independence after Antonio José de Sucre defeated the Spanish Royalist forces at the Battle of Pichincha, near Quito. Following the battle, Ecuador joined Simon Bolívar's Republic of Gran Colombia, also including modern-day Colombia, Venezuela and Panama. In 1830 Ecuador separated from Gran Colombia and became an independent republic.
Spanish is the official language and is spoken by a majority of the population, though thirteen Amerindian languages are also recognized, including Quichua and Shuar. The capital city is Quito, while the largest city is Guayaquil. In reflection of the country's rich cultural heritage, the historical center of Quito was declared a UNESCO World Heritage Site in 1978. Cuenca, the third-largest city, was also declared a World Heritage Sitein 1999 as an outstanding example of a planned, inland Spanish-style colonial city in the Americas. Ecuador has a developing economy that is highly dependent on commodities, namely petroleum and agricultural products. The country is classified as a medium-income country. Ecuador is a democratic presidential republic. The new constitution of 2008 is the first in the world to recognize legally enforceable Rights of Nature, or ecosystem rights. Ecuador is also known for its rich ecology, hosting many endemic plants and animals, such as those of the Galápagos Islands. It is one of seventeen mega diverse countries in the world. In December 2008, president Correa declared Ecuador's national debt illegitimate, based on the argument that it was odious debt contracted by corrupt and despotic prior regimes. He announced that the country would default on over $3 billion worth of bonds; he then pledged to fight creditors in international courts and succeeded in reducing the price of outstanding bonds by more than 60%. He brought Ecuador into the Bolivarian Alliance for the Americas in June 2009. To date, Correa's administration has succeeded in reducing the high levels of poverty and unemployment in Ecuador.
Juan Montalvo Fiallos
On December 29, 1845, President Vicente Ramón Roca authorized a coin to compete with the Fuertes (full-bodied coin) of other countries. This was the peso Fuertes, 903 fine. The standard of 875 fine for gold was identical to that of Ecuador's neighbors and presented no problem. The standard of 903 fine for silver, however, resulted in a heavy export of the coin. It disappeared as soon as it entered circulation (Gresham's law), grabbed up by the merchants of Guayaquil. On July 7, 1846, the value of the Fuertes was raised from 8 to 9 reales in a vain attempt to keep it in circulation. The November 1846 monetary law adopted a new type with a bust of Bolívar for gold and a Liberty bust for silver. These appeared on coins dated 1847. The bulk of the circulating currency consisted of poor quality, worn coins. As soon as the new silver coins appeared, they were clipped and perforated in order to reduce their value to that of the circulating currency, while gold coins immediately disappeared abroad.
By the 1850s the Quito mint was not receiving enough precious metals to justify its operation. It had to coin a minimum of 6,000 pesos a year just to meet overhead. The mint was shut down during 1853 while the government considered the options of keeping it open or shutting it down. The mint equipment was worn and could not produce coin in sufficient quantity to compete with the foreign coin that entered Ecuador, especially through the port of Guayaquil.
Many coins in circulation were pierced with a hole, and this was causing problems in financial transactions. The governor of Pichincha Province proclaimed that anyone piercing a coin minted after 1855 would be punished according to existing penal regulations and that anyone receiving such a pierced coin had to make note of the person passing it.
A government decree of October 9, 1925, authorized a central bank, and on June 23, 1926, President Isidro Ayora created the Caja Central de Emisión y Amortización (central office for note issue and withdrawal) in anticipation of the central bank. Its main task was to assume control of the notes and metallic reserves of the six private banks of issue and to withdraw their notes in exchange for notes of its own. Caja began exchanging private banknotes for notes of its own in December 1926, continuing its operations until August 12, 1927. The Kemmerer Financial Mission (Comisión de Expertos Financieros) arrived in 1926, and its report was the basis for the monetary reform of March 4, 1927, which created El Banco Central del Ecuador and put the Sucre on the gold exchange standard, with devaluation (58.8%) to 300.933 mg Au (equivalent to US$0.20). The new cóndor was 8.35925 g 900 fine, valued at 25 sucres (equivalent to the US half eagle). Banco Central's statutes were approved June 3, it was formally inaugurated August 10, and it began operations October 1. Ecuadorian gold was recoined at Birmingham, silver at Philadelphia. The gold exchange standard was suspended on February 8, 1932. Exchange controls were adopted April 30 and the official rate was fixed at 5.95 (buying) per US dollar. After the price of silver rose above the nominal value of most silver coins in the 1930s, Ecuador embargoed the export of silver (May 17, 1935). This was followed by numerous adjustments to the foreign exchange system as the Sucre continued to depreciate. Foreign exchange controls were finally lifted in September 1937 and the official rate was set at 13.50 per US dollar. The Sucre was devalued to 14.77 per dollar on June 4, 1940, and exchange controls were re-imposed. The official rate became 14.00 per in 1942 and 13.50 per in 1944.
|National Song||"Salve, Oh Patria"|
|Currency||United States dollar (USD)|
|GDP / GDP Rank||183.61 Billion USD|
|GDP Growth Rate||0 Percent|
|GDP Per Captial||$11108.56 (PPP)|
UTC−06:00 (GALT) — Galápagos Province
UTC−05:00 (Ecuador Time) — main territory of Ecuador
< 1.0% Muslims
< 1.0% Hindus
< 1.0% Buddhists
< 1.0% Jews
< 1.0% Other Religions
Mestizo (Mixed Amerindian And White) 65%
Spanish And Others 7%
President – Lenín Moreno
|Website||Go to the web|
|Public Debt||29.244 Percent|
|Unemployment Rate||5.361 Percent|
|Labor Force (Occupation)||-|