- Title: EL SALVADOR: DOLLARISATION PROCESS CAUSES CONFUSION
- Date: 5th January 2001
- Summary: SAN SALVADOR, EL SALVADOR (JANUARY 3, 2001)(REUTERS) 1. MV PEOPLE LOOKING AT CONVERSION GUIDES; VENDORS AND BUYERS IN CITY CENTRE; SCU CONVERSION GUIDE VENDOR (3 SHOTS) 0.24 2. SLV PLACARDS IN STORES ANNOUNCING OFFICIAL CURRENCY CONVERSION 0.32 3. MV /SCU STORE EMPLOYEES DISPLAYING PRODUCTS FOR SALE IN DOLLARS AND COLONES; SCU PRODUCTS WITH WITH PRICE DETAILS IN BOTH MONETARY UNITS (4 SHOTS) 0.58 4. (SOUNDBITE)(Spanish) VICTOR AREVALO, PLUMBER SAYING "This is bad, bad, bad here we had to study this, how we are going to come out, we are plumbers, we have to charge clients in colones [Salvadoran monetary unit], and then I have to pull out my sheet [conversion guide] to tell the client I'm charging them $20, how many [colones] are there in $20? 175 colones." 1.20 5. SCU PLUMBERS DISCUSSING AND TRYING TO CALCULATE EXCHANGE RATES WITH INCORRECT CALCULATIONS 1.30 6. SCU CONVERSION GUIDES WITH CALCULATION ERRORS 1.37 7. SLV CENTRAL RESERVE BANK OF EL SALVADOR; SCU CENTRAL RESERVE BANK OF EL SALVADOR BANK SIGN; CU PERSON COUNTING DOLLARS (3 SHOTS) 1.54 8. (SOUNDBITE)(Spanish) CENTRAL RESERVE BANK OF EL SALVADOR PRESIDENT, RAFAEL ANTONIO BARRAZA SAYING "Initially there is always a bit of confusion, but I have to tell you, a million and half Salvadorans have dollars; they use them in the United States and that is because many Salvadoran families are used to using dollars, it should be an easy transition." 2.13 9. SCU CHILD SELLING NEWSPAPERS WITH U.S. CURRENCY IN DIFFERENT DENOMINATIONS 2.21 10. SCU NEWSPAPER ALERTING TO COUNTERFEIT U.S. DOLLARS 2.27 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 20th January 2001 12:00
- Keywords:
- Location: SAN SALVADOR, EL SALVADOR
- Country: El Salvador
- Reuters ID: LVA1U3CURJDEZWHONU2U443LSDCG
- Story Text: The "dollarization" process was initiated by El
Salvador's conservative government in hopes of boosting the
country's economy, but the use and exchange of U.S. dollars
was rife with confusion.
Salvadorans began a new monetary policy at the
beginning of the year with the conservative government's
introduction of U.S. dollars into the staggering nations'
economy. But by Tuesday (January 2) the highly touted plan was
stumbling as conversion rate confusion set in.
"This is bad, bad, bad," said Victor Arevalo, a plumber,
"Here we had to study this,...we are plumbers, we have to
charge clients in colones [Salvadoran monetary unit], and then
I have to pull out my sheet [conversion guide] to tell the
client I'm charging them $20."
The one-year old government of President Francisco
Flores installed the dollar conversion program to help boost
the countries' beleaguered economy following in the footsteps
of other Latin American nations such as Argentina and Ecuador.
Just about every newspaper in the country contained bank
and government advertisements stating the conversion rates,
how to calculate retirement funds, new check formats and how
to use automatic teller machines, many of which did not work
on Monday (January 1).
The bank also gave advice on how to spot counterfeit
greenbacks.
Many small vendors, some buses and some gas stations
continue to charge in colones and have openly said that they
will resist having to use dollars.
Large businesses were faced with not having enough small
change, such as, pennies, to complete their conversion to
dollars.
The president of the Central Reserve Bank of El
Salvador, Rafael Antonio Barraza, was optimistic that the
confusion would abide and the "colon " would soon be a thing
of the past.
"Initially there is always a bit of confusion, but I
have to tell you, a million and half Salvadorans have dollars;
they use them in the United States and that is because many
Salvadoran families are used to using dollars, it should be an
easy transition."
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