Ecuador currency tips: Why Ecuador Use the US Dollar?
Yes! The official currency in Ecuador is the US dollar, making it incredibly convenient for travelers from the United States. No need to worry about currency exchange or fluctuating conversion rates—just bring your dollars and enjoy your trip! But not before you read the full article we have put together for you! Ecuador currency and some convenient tips!
Why Does Ecuador Use US Dollars?
Ecuador adopted the US dollar in the year 2000 after a severe economic crisis led to the collapse of its former currency, the Sucre. Prior to dollarization, hyperinflation had drastically reduced the value of the Sucre, making daily transactions difficult and unpredictable. The transition to the US dollar took several months, during which confusion was widespread—people were unsure how much things should cost and whether they were receiving fair change. However, once the US dollar became Ecuador’s official currency, economic stability improved significantly.
When Did Ecuador Change Currency?
Ecuador officially adopted the US dollar as its national currency in 2000. The government pays an annual fee to the United States for the right to use its currency. Today, the Sucre is merely a part of Ecuador’s history and can be seen in museums but is no longer in circulation.
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Ecuador Dollarization: How It Works
Ecuador does not print its own currency and does not have an Ecuadorian version of the dollar. The exact same US dollar bills and coins that are used in the United States are used in Ecuador. This means that a $1 bill in the US is worth the same in Ecuador. The familiar faces of George Washington, Abraham Lincoln, Alexander Hamilton, and Benjamin Franklin appear on Ecuadorian currency, just as they do in the United States.
What Happened to Ecuador’s Former Currency?
The Sucre disappeared after dollarization. While some coins and bills remain as collectors’ items, the Numismatic Central Bank Museum in Quito (located at the corner of Garcia Moreno and Simon Bolivar) exhibits Ecuador’s former currency. Other than that, most Sucres were likely destroyed.
Ecuador Currency Tips: Where to Get Exchange
If you are traveling from a country that does not use the US dollar, you may need to exchange your money. Exchange offices are available at Quito International Airport and Guayaquil Airport, making it easy to convert your cash upon arrival. However, keep in mind that there is no separate Ecuadorian dollar—only US dollars.
Galapagos Islands Currency
The Galapagos Islands, as part of Ecuador, also use US dollars being the official currency. There is no separate currency for the islands, so all transactions are made in USD. And ATMs are available at the island but not as many.
Ecuador Currency Tips for Travelers
To make your trip smoother, here are some important money-related tips:
- Cash is king: Although credit and debit cards are accepted at large establishments, cash is the preferred payment method in Ecuador. Many businesses avoid card transactions due to high banking fees (4–8%).
- Use small bills: Most shops, taxis, and markets do not accept $50 and $100 bills. Stick to $1, $5, $10, and $20 bills to avoid payment issues.
- Coins are widely used: Since cash is common, coins play a significant role in daily transactions. Ecuador uses both US-minted coins and Ecuadorian-minted coins (smaller than $1). The Ecuadorian-minted coins can only be used within Ecuador, so spend them before you leave the country.
- Avoid ‘ugly bills’: Fifty and hundred-dollar bills are often called “billetes feos” (ugly bills) and are sometimes rejected due to counterfeiting concerns.
Making Purchases in Ecuador
If you are buying something small (e.g., a $1 item), try to pay with small bills or coins. Many small businesses, like street vendors and local cafés, will not have change for large bills.
Using Credit Cards in Ecuador
- Accepted in major businesses: Most hotels, large restaurants, and shopping malls accept credit cards, but a 4–8% transaction fee may apply.
- ID is required: Many businesses will ask for identification when you pay with a credit card for security reasons.
- Support the local economy: To help small businesses, use cash whenever possible.
ATMs in Ecuador
- Widely available: ATMs are common in major cities and towns.
- Fees apply: Expect to pay $5–$8 per transaction when withdrawing cash from an ATM in Ecuador.
- Daily withdrawal limit: Most ATMs have a $500 daily withdrawal limit.
- Choose safe locations: Use bank-affiliated ATMs (built into walls) instead of stand-alone cash machines in small shops for better security.
- Notify your bank: Before traveling, inform your bank that you will be using your card in Ecuador to prevent any issues with withdrawals or purchases.
Final Thoughts
Ecuador’s use of the US dollar simplifies travel for many visitors. However, since cash is the most common form of payment, carrying small bills and coins is essential. Avoid large denominations, be aware of transaction fees, and always use ATMs in secure locations. By following these tips, you’ll be well-prepared for handling money in Ecuador.
Happy travels!
