Tuesday February 29 10:12 PM ET
Ecuador Reports 10 Percent Inflation
Ecuador Reports 10 Percent Inflation
QUITO, Ecuador (AP) - The government on Tuesday reported
inflation of 10 percent in February, the highest in Latin America. The report came as Ecuador's legislature debated reforms aimed
at replacing the national currency with the U.S. dollar, a move
supporters say will curb inflation by prohibiting the nation from
printing more money to meet its budget. German Rojas, director of Ecuador's Institute of Statistics,
said the country has registered an accumulated two-month interest
increase of 25.8 percent, and that in the last 12 months, annual
inflation had reached 90.8 percent. He said that was the highest in
the Western Hemisphere. The currency changeover was introduced by President Jamil
Mahuad, who on Jan. 21 was forced from power by a military-backed
uprising by thousands of Indians angry at his inability to halt
Ecuador's economic slide and curb corruption. Power was ceded to the elected vice president, Gustavo Noboa,
who, upon assuming the presidency, said he would continue the plan. The Clinton administration on Monday pledged support for the
currency switch, saying it would use its pull with international
lenders to help the plan succeed.
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