I’m ticked, like most Americans as I continue to watch the dollar drop in value. With the dollar at or near all-time lows against many foreign currencies, like the Euro, I thought I’d mention the effects I’ve seen in Ecuador.
Ecuador is one of the few countries in the world that actually uses the dollar as it’s official currency. In Latin America, only El Salvador and Panama also use the dollar.
This means that as the dollar drops, and the rest of the world gets more expensive for Americans on a fixed, dollar pension…their only options will be to stay at home (what I think the American government wants) or choose to live in one of the few other countries with the dollar, like Ecuador.
This is a BIG deal and makes Ecuador a very attractive both short and long term investment, as well as an interesting, warm, relatively-nearby place to retire for many Americans.
For example, in 2006 I lived in Colombia, then the dollar traded at around 1-2500 Colombian Pesos, now a dollar is worth 1811 pesos, a 28% drop in value. When I visited Brazil in 2006 the Real was trading around 2.15 to the dollar, now it’s at 1.57 to the greenback, a 27% drop.
And if the world’s rich realize the dollar is a losing investment, and dump it, the dollar will be worth even less, as I saw on a recent trip to Hong Kong where many of the rich I met who before held dollars now hold their savings in Chinese Yuan. It’s well-documented the Yuan is undervalued yet continues to gain in value against the dollar at a steady, government-regulated pace (it’s gained 4.5% over the last year against the dollar according to xe.com).
Buy Yuan. Invest in Ecuador. Interesting.
This coming week I’ll reveal how to buy Yuan on my Insider’s Ecuador Newsletter, sign up below (you can unsubscribe at any time):
Good info,although you left out banking in Ecuador. Im from US Georgia , are there any US banks in Ecuador? I plan to visit ,then maybe move to Quito if I like. My wife is Peruvian and speaks Spanish, I think I will have an advantage there.