The CBAR plans to make a transition from the current peg regime where exchange rate acts as a “nominal anchor” to an inflation targeting (IT) regime. All leading central banks which adhere to an IT regime adopt a respective operational framework consistent with the announced monetary regime....

The paper analyzes the official dollarization process that began in the Ecuadorian economy in 2000 and the changes it has led in monetary policy. Based on economic theory and international literature, generalized economic policy proposals for resource-rich countries are given.