Acuñación de moneda fraccionaria nacional ecuatoriana versus la importación de moneda americana.

Abstract

Among the various functions of the Central Bank of Ecuador or better known by its acronym as BCE, establish those particularities that entail the process of circulating currency, minting, issuing it, exchanging it and withdrawing from circulation that fractional currency that Due to its deterioration, it cannot circulate again. In addition, we have imports of American currency, which since the country was dollarized these operations have been constant, this in order to meet the demand generated by users, it is estimated that approximately 400 million in North American currencies have been imported, which represents 2.1% compared to the total circulation of monetary species (Banco Central del Ecuador, 2022). Due to this situation, the approach to this problem is to determine whether or not it is convenient for the country to mint national fractional currency, in terms of costs and so as not to depend solely on the availability of coins that the US Federal Reserve can offer. USA through imports made by the ECB, given the risks associated with a shortage, with adverse repercussions for the national economy. The cost of minting and which would appear in the ECB budget would temporarily affect the international reserve assets for the amounts referred to, however, when the national currency minted is put into circulation, the reserve assets increase even by a value than what was spent, at the same time that a liability is created for the issuance of metallic currency, in this case equivalent to one United States dollar. The amounts that increase the international reserves could generate a financial return during the useful life of the currency, which would be part of the Institution's profit, in this case by seigniorage; These values will be recorded as reserve assets on the balance sheet while the minted coins are circulating in the economy. This means that if a metallic coin equivalent to one United States dollar is minted for a referential value of USD 50.0 million and if the minting expenses represent an estimated amount of USD 28.0 million, this according to the reference prices of the mints, during the 3 years there would be an increase in reserve assets of approximately USD 22.0 million, obviously this will happen while the minted currency Página 10 de 39 is in circulation in the national economy. In this way, the ECB would guarantee the normal flow of currencies in the economy, in an international environment of restricted supply of currencies issued by the FED