Did they had an agreement with US Government? How is the money supplied to Ecuador? How do they replace the old bills? I am just curious...
Did they had an agreement with US Government? How is the money supplied to Ecuador? How do they replace the old bills? I am just curious...
Yes I believe they have an arrangement with the Fed and IMF. Coins are minted and flown to Ecuador in jumbo jets. By old bills do you mean the previous sovereign currency (the Sucre)? I believe that was the last act of the Ecuadorian Central Bank - to take the old bills as deposit and convert to fed reserve notes. A shameful act if you ask me. The crisis preceding the dollarization was largely caused by politicians trained in USA and insistent on the Washington Consensus (https://en.wikipedia.org/wiki/Washington_Consensus) & (https://en.wikipedia.org/wiki/Jamil_Mahuad)
The old Dollar bills. In the US the banks receive them and send them to be incinerated by the Govenment. I think the same occurs in Ecuador, they send the old bills to US to be incinerated.
Ah yes, I will try to discover the answer for sure. But I think you are right that is the case in Ecuador as well. On the notes themselves it says property of the Federal Reserve so only they can lawfully destroy them or grant power to do so.