|
Article Excerpt
Perhaps spurred on by popular opposition to free trade agreements (see other story in this edition) with the US, Canada, or the European Union (EU), drums have begun to beat for replacing the national currency, the lempira, with the dollar. Such a change would make Honduras the third Central American country to adopt the measure after Panama and El Salvador (see NotiCen, 2001-12-14).
Honduran economist and businessman Carlos Urbizo Solis ticked off the accelerated depreciation of the lempira and Central Bank undisciplined fiscal policy as more than sufficient reasons to adopt the measure. He said dollarization would force the state to have a healthy fiscal policy, reduce inflation to that of the US, and reduce interest rates to the 8% or 9% available in the US from the 20% current in Honduras. The dollar would also restore confidence in the economy.
Urbizo also said that changing the currency would not be a panacea for...
|
|
More articles from NotiCen: Central American & Caribbean Affairs
PROTESTERS SAY THE CONQUEST IS A WORK IN PROGRESS., October 17, 2002
Looking for additional articles?
Search our database of over 3 million articles.
Looking for more in-depth information on this industry?
Search our complete database of Industry & Market reports by text, subject, publication
name or publication date.
About Goliath
Whether you're looking for sales prospects, competitive information, company
analysis or best practices in managing your organization,
Goliath can help you meet your business needs.
Our extensive business information databases empower business
professionals with both the breadth and depth of credible,
authoritative information they need to support their business
goals. Whether it be strategic planning, sales prospecting,
company research or defining management best practices -
Goliath is your leading source for accurate information.
|
|
