The dollar, without exchange-rate risk

Ecuador has used the US dollar as its official currency since 2000. For an investor that means something fundamental: no exchange-rate risk and no local-currency inflation, which is rare in Latin America. And the country is small and remarkably varied — from the coast through the Andes to the Amazon and the Galápagos.

Land and property prices are among the lowest of the dollarised countries, and the cost of living is low even by regional standards. Favourable residence programmes for people of independent means and retirees have been in place for years.

What Ecuador offers

• A dollarised economy with no exchange-rate risk.
• Cheap land and a low cost of living.
• Favourable residence programmes for retirees and those living on income.
• Strong agriculture — bananas, cocoa, flowers and prawns.

What to watch

Security has deteriorated markedly in recent years, above all in the coastal port cities; the state has repeatedly declared a state of emergency. This cannot be brushed aside — choosing the location and checking the ground are decisive here. Dollarisation also means the state cannot print money, so the public finances are more exposed to the oil price.

We advise which areas make sense and help with residence and with checking out a specific investment.