Banco Central del Ecuador
| Headquarters | Quito , Ecuador |
| founding | August 10, 1927 |
| country | Ecuador |
| currency | |
| ISO 4217 | USD |
| Currency reserves | US $ 3.2 billion (November 2019) |
| Website | |
| List of central banks | |
The Banco Central del Ecuador (BCE) is the central bank of Ecuador . Until the introduction of the US dollar as the official currency of the economy in 2000, it was the issuer of the Ecuadorian sucre .
Emergence
The July Revolution (July 9, 1925), which led to the takeover of power by the socialist Liga de Militares Jóvenes, initiated the process of founding a central bank. The crisis in the country caused by the non-convertibility of the currency, inflation, speculation, credit abuse, and a lack of official control over the banks made the situation necessary to rectify.
On October 18, 1926, President Isidro Ayora declared that banks authorized to issue banknotes must surrender certain amounts of gold and silver to the central fund, which totaled 10.6 million sucres. In the meantime, the Commission, led by Edwin W. Kemmerer , was preparing a major economic restructuring to modernize Ecuador's financial practices. Kemmerer was selected for this assignment because he had successfully performed similar assignments in other countries in South America.
On February 11, 1927, the Kemmerer Mission presented its results, along with a reason, to the government. They proposed a company that would be licensed to issue money for 50 years, discounted at a fixed rate, become a repository for governments and member banks, manage the foreign exchange market, and act as the country's tax representative. Since the functions of the new institution were closely linked to the sovereignty of the government and the public interest, the government was asked to participate in its administration.
On March 12, 1927, President Isidro Ayora issued the organic law of the Central Bank of Ecuador. The preparation of the functioning of the new institution was directed by an organizing committee appointed by Ayora himself.
On June 3, 1927, the government of Ecuador approved the statutes. They negotiated between the two agencies and overcame difficulties between the publication of the central fund and the new institution. Finally, the Central Bank of Ecuador opened its doors on August 10, 1927. On August 25, 1927, the headquarters in Guayaquil was opened.
Individual evidence
- ^ Ecuador Foreign Exchange Reserves . tradingeconomics.com. Accessed January 6, 2020 (English)