Understanding Ecuador Currency and Money

Ecuador's official currency is the US dollar, which is widely accepted throughout the country. This is a unique aspect of Ecuador's economy, as it's one of the few countries that has dollarized its currency.

You can exchange your money for US dollars at banks, currency exchange offices, or some hotels. Credit cards are also widely accepted, especially in tourist areas.

The US dollar has been Ecuador's official currency since 2000, when the country abandoned its previous currency, the sucre. This change was made to stabilize the economy and attract foreign investment.

Ecuador has a long and complex history with its currency, with various coins and bills being used over the years.

The first currency used in Ecuador was a mix of foreign-minted and Ecuadorian-produced coins in the 1800s, including the "peso fuerte", the "franco", and another version of the peso.

Ecuador's currency has undergone many changes, with the sucre being introduced in 1884 and later replaced by the US dollar in 2000.

The sucre was used from 1884 to 2000, with various denominations and coins being introduced, including the gold standard in 1898.

In 2000, Ecuador decided to replace its own currency with US dollars, which has helped stabilize the economy and reduce inflation.

Here are some key dates in Ecuador's currency history:

During this period, Quito was part of Gran Colombia until 1830 as Departamento del Sur.

The monetary regulations of Gran Colombia retained the old Spanish colonial system, with both milled and hammered coin circulating.

Gold and silver were minted at Popayán and Bogotá, while copper was minted at Caracas.

A mint was authorized at Quito on July 28, 1823, but it wouldn't open for almost a decade.

Cobs (macuquina) were ordered withdrawn in 1826, but they continued to circulate due to the lack of other coin.

In the provinces, only old Spanish colonial coin and macuquina circulated, mostly Peruvian.

In the 1800s, a number of different coins were used in Ecuador, including the "peso fuerte", the "franco", and another version of the peso.

The peso fuerte was introduced in 1846, with a standard of 903 fine for gold and a Liberty bust for silver. However, it disappeared from circulation soon after its introduction due to Gresham's law.

Coins in circulation during this time period were often pierced with a hole, causing problems in financial transactions. The governor of Pichincha Province even issued a proclamation to punish anyone piercing a coin minted after 1855.

Some specific coins from this time include:

Ecuador has a rich history of currencies, with the sucre being the official currency for many decades. It was first introduced in 1884 and was backed by silver until 1898, when it became backed by gold.

The sucre was not the first currency used in Ecuador, however. In the 1800s, a mix of foreign-minted and Ecuadorian-produced coins were used, including the "peso fuerte", the "franco", and another version of the peso.

Between 1898 and 1914, the sucre was backed by gold, with the gold standard being adopted on November 3, 1898. The gold coin, called the cóndor ecuatoriano, was minted at Birmingham and issued through private banks.

The cóndor ecuatoriano was a significant coin, weighing 8.136 g and being 900 fine. It was valued at 10 sucres and was equivalent to 732.22382 mg of fine gold or 2 shillings sterling.

During this time, other coins were also minted, including copper-nickel coins and silver coins. The silver coins included the peseta (2 décimos), the real or décimo (10 centavos), and the medio (5 centavos).

The following coins were minted during this period:

The gold standard was eventually abandoned in 1932, but the sucre remained the official currency until it was retired.

The sucre, Ecuador's official currency from 1932 to 2000, had a tumultuous history. It was pegged to the US dollar at 5.95 (buying) per US dollar in 1932.

In the 1930s, Ecuador embargoed the export of silver, which led to numerous adjustments to the foreign exchange system as the sucre continued to depreciate. The official rate was set at 13.50 per US dollar in 1937.

The sucre was devalued to 14.77 per dollar in 1940, and exchange controls were reimposed. It was devalued again to 15 per dollar in 1950.

The sucre's value continued to decline, with a devaluation to 18 per dollar in 1961 and to 25 per dollar in 1970. It maintained a fairly stable exchange rate against the US dollar until 1983.

In 1983, the sucre was devalued to 42 per dollar, and a crawling peg was adopted. By 1990, the free market rate had surged to over 800 per dollar.

The sucre's value plummeted further, reaching almost 3000 per dollar by 1995. In 1999, it lost 67% of its foreign exchange value, and by January 2000, it had nosedived to 25,000 per dollar.

Ecuador's currency has had a significant shift in recent history. It uses the U.S. dollar as its official currency.

The reason for this change is rooted in the financial crisis of 2000, which led to a dramatic decline in the value of the Ecuadorian currency, the "sucre." This crisis had a profound impact on the local population, who began to use dollars as a more stable store of value.

In 2000, the Ecuadorian government officially acknowledged the U.S. dollar as the country's currency, replacing the sucre. This move was a response to the economic crisis and the widespread adoption of dollars by the local population.