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Why does the dollar buy more in Ecuador?
It seems odd that a dollar buys more in foreign countries than it does in it native country. I know this is true in other countries as well, I'm just using Ecuador as an example.
I know that the dollar buys more, I care about the theory behind why it does. Simply stating that the economy is different doesn't help me.
3 Answers
- Anonymous8 years agoFavorite Answer
It's called the exchange rate gain. That is why our old guys love to spend the rest of their life in developing poor countries. A pension of $1,000 would live like a king. Ecuador is a great example, but you would gain more in Laos and Myanmar or even Cambodia from your dollar.
- Anonymous8 years ago
Any currency will always buy more in poorer countries. B/c quality of life is lower, wages are lower as well, bringing down prices and costs.
Ecuador money buy more in Equador than in the US.
US is one of the most developed countries, so it is hard to find a place where dollar buys more than in the US.
- ?Lv 78 years ago
I think Ecuador is dollarized economy.
It is a less consuming, cheap labor, moderate lifestyle society - so naturally dollar is of more worth.