Until 2000, the Ecuadorian currency was the Sucre. It owed its name to the General Sucre who was one of the liberators of the country in the 19th century. This currency was used from 1884 but collapsed in 1999 due to a serious economic crisis.
In order to create a free trade area of Americas and thus facilitate the flow of capital, goods and services between the borders of the continent, the use of a single currency had been suggested. After the collapse of the Ecuadorian currency in the end of 1990s, the government decided to adopt the US dollar in order to boosts its economy.
With the emergence of the dollar, the country’s economy stabilized, thus avoiding a constant increase in prices. During your trip to Ecuador, you will have to pay mostly in cash. However, it is better to use 5, 10 or 20 USD bills and especially to have change as large bills are more difficult to sell because of people fearing that they may be fake.
Of course you can also use credit cards. However be aware that in Ecuador, banks take a commission of about 6% in addition to VAT when you withdraw money.
It is therefore best to arrive in Ecuador with you US dollars as the rates at exchange offices are often not at all advantageous.
