Chavismo removes deputy for proposing Venezuela's dollarization

The Chavista-controlled National Assembly of Venezuela has ousted deputy Antonio Ecarri from his position as president of the Parliamentary Friendship Group with the United States. This action was taken shortly after Ecarri announced his intention to advance a plan for the dollarization of the Venezuelan economy.

The conflict escalated on Friday when Ecarri publicly disclosed that he had initiated discussions and consultations with American economist Steve Hanke, a proponent of replacing local currencies with the U.S. dollar in economies plagued by inflation. Less than 24 hours later, Ecarri was formally removed from his post.

In a strong rebuke, National Assembly President Jorge Rodríguez accused Ecarri of undertaking "irresponsible actions" that undermine the nation's legal framework. Rodríguez, who is leading Chavismo's dialogue process with opposition sectors under U.S. supervision, cited Article 318 of the Constitution. This article establishes the bolívar as the sole monetary unit and reserves the exclusive authority for monetary policy to the Central Bank of Venezuela (BCV).

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irresponsible actions

Rodríguez not only removed Ecarri from the international commission but also ordered an investigation into his parliamentary responsibilities and potential sanctions. "I will not allow a friendship group to be used to clumsily and spuriously undermine the constitutional and legal foundations of our Republic," Rodríguez stated in a communiqué.

Ecarri, however, defended his initiative as a necessary emergency measure to rescue the country from its financial crisis. He argued that a stable currency is the only viable path to curb inflation and bridge the exchange rate gap that daily erodes citizens' purchasing power. He also asserted his constitutional right to propose legislation. Ecarri questioned the government's injection of over $6 billion into exchange tables without stabilizing the economy since January 3.

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I will not allow a friendship group to be used to clumsily and spuriously undermine the constitutional and legal foundations of our Republic.