QUITO, March 18 (Xinhua) -- Ecuadorian President Daniel Noboa on Tuesday ratified the U.S. dollar as the nation's official currency and sole means of payment, the government announced.
The executive order ratifying the use of the U.S. dollar was issued in the Andean city of Cuenca, in southern Ecuador, where Noboa carries out official duties, and published on the presidency's website.
The decree urges lawmakers from the ruling National Democratic Action (ADN) movement to propose a legislative reform to Article 303 of the Constitution so that "the Central Bank of Ecuador may not issue any type of currency or parallel currency other than the dollar."
The goal is to promote and maintain a stable monetary system, and contribute to financial stability, to preserve the integrity of dollarization, according to the decree.
In addition, the text proposes that all transactions, monetary and financial operations, and their accounting records, carried out in the Republic of Ecuador be denominated in dollars.
Noboa also proposes that the central bank not provide direct or indirect financing to public sector institutions.
Previously, in a radio interview in Cuenca, Noboa indicated he would be issuing the decree, amid a nationwide debate over dollarization ahead of a presidential runoff on April 13.
The runoff will see Noboa compete against progressive candidate Luisa Gonzalez, of the Citizen Revolution movement, who some say is looking to propose an alternative currency to the dollar.
Ecuador adopted the U.S. dollar as its national currency in 2000 during a severe financial and economic crisis.
According to the central bank, dollarization has generated monetary and financial stability despite the external shocks that have affected the country over the last two decades.
