"established a complete monopoly on foreign bills of exchange. Late in 1922 the free market rate fell to 5.405 per dollar. The government took draconian measures, requiring exporters to surrender foreign exchange earnings at a rate set by the Exchange Commission (3.60/US$). The government struggled with the foreign exchange problem until the sucre was finally stabilized in 1926 at 5 sucres per US dollar. The economic situation was disastrous, due in part to the fraud of the commercial banks, the most notorious of which was Banco Comercial y Agrícola's issue of notes in excess of the legal limit in the"
"Currency of Ecuador The article provides a historical summary of the currency used in Ecuador. The present currency of Ecuador is the United States dollar. Quito was part of Gran Colombia until 1830 as ""Departamento del Sur"". Gran Colombia's monetary regulations retained the old Spanish colonial system, with both milled and hammered coin circulating. Gold and silver were minted at Popayán and Bogotá, copper at Caracas. On July 28, 1823, Bolívar authorized a mint at Quito, but almost a decade would pass before one opened there. Cobs (macuquina) were ordered withdrawn in 1826, but because of the lack of other"
"denominations of 1, 5, 10, 20 and 100 pesos, and the ""Banco Anglo-Ecuatoriano"" issued notes in 1884 for 1, 5 and 10 pesos. Ecuadorian peso The peso was a currency of Ecuador until 1884. Peso was the name of the 8 real coins circulating in Ecuador since the Spanish colonial period. In 1856, the currency was pegged to the French franc, with 1 peso = 5 francs. From 1862, paper money was issued denominated in reales and pesos. The peso was formally adopted as the currency of Ecuador in 1871, replacing the real at a rate of 1 peso ="
"Ecuadorian real The real was the currency of Ecuador until 1871. There were no subdivisions but 16 silver reales equalled 1 gold escudo, with the 8 reales coin known as a peso. Until 1822, the Spanish colonial real circulated, followed by the Colombian real. Ecuador introduced its own coinage in 1833, with the Ecuadorian real replacing the earlier currencies at par. In 1856, the currency was pegged to the French franc, with 8 reales = 5 francs (1 real = 62½ centimes). From 1862, banknotes were issued denominated in pesos and reales. The real was replaced by the peso in"
"Ecuadorian peso The peso was a currency of Ecuador until 1884. Peso was the name of the 8 real coins circulating in Ecuador since the Spanish colonial period. In 1856, the currency was pegged to the French franc, with 1 peso = 5 francs. From 1862, paper money was issued denominated in reales and pesos. The peso was formally adopted as the currency of Ecuador in 1871, replacing the real at a rate of 1 peso = 8 reales. It was subdivided into 100 centavos. In 1884, the peso was replaced by the sucre at par. The only coins issued"
"be adopted as Ecuador's official currency, although the US dollar had already had wide informal use in Ecuador before this decision was made. The US dollar became legal tender in Ecuador on March 13, 2000, as sucre notes ceased to be legal tender on September 11, 2000. Sucre notes were exchangeable at a rate of 25,000 sucre per dollar at Banco Central until March 30, 2001. In 1884, cupro-nickel one and a half centavo coins, as well as silver half decimo coins, one and two decimo coins, sucre and half sucre coins were introduced. Centavo coins minted as denominations of"
"(together with 100, 500 and 1000 sucre coins) include: Sucres per U.S. Dollar: Ecuadorian sucre The Sucre () was the currency of Ecuador between 1884 and 2000. Its ISO code was ECS and it was subdivided into 10 ""Decimos"" or 100 ""Centavos"". The sucre was named after Latin American political leader Antonio José de Sucre. The currency was replaced by the US dollar as a result of the 1998–99 financial crisis. The Ecuadorian peso was renamed as the ""Sucre"" on March 22, 1884, and was then linked to the silver standard. The Sucre was tied to 22.5 g of fine"
"Ecuadorian sucre The Sucre () was the currency of Ecuador between 1884 and 2000. Its ISO code was ECS and it was subdivided into 10 ""Decimos"" or 100 ""Centavos"". The sucre was named after Latin American political leader Antonio José de Sucre. The currency was replaced by the US dollar as a result of the 1998–99 financial crisis. The Ecuadorian peso was renamed as the ""Sucre"" on March 22, 1884, and was then linked to the silver standard. The Sucre was tied to 22.5 g of fine silver (equivalent to 5 LMU francs). Outdated coins were taken out of circulation"
"Ecuadorian centavo coins Ecuadorian centavo coins were introduced in 2000 when Ecuador converted its currency from the sucre to the U.S. dollar. The coins are in denominations of 1, 5, 10, 25 and 50 centavos and are identical in size and value to their U.S. cent counterparts (although the U.S. 50-cent coin counterpart is not often seen in circulation). They circulate within Ecuador alongside coins and banknotes from the USA. Although U.S. $1 coins are rarely used in the U.S., they are commonly used in Ecuador. Ecuador managed to introduce a $1 coin (""Un sucre"") but finally decided to not"
"president Mahuad's adoption of the U.S. dollar as Ecuador's domestic currency in 2000 to combat the country's inflation. Correa has characterized American dollarisation as a ""technical error"" which has effectively eliminated Ecuador's ability to set its own currency and exchange policy. However, Correa has also acknowledged that it would be politically and economically impossible to abandon that policy now. After his election victory of 15 April 2007, he pledged to maintain dollarisation during the entire four years of his administration, though he also indicated his support for the idea of replacing the US dollar with a regional South American currency"
"announced its intention to adopt the U.S. dollar as the official currency of Ecuador to address the ongoing economic crisis. Subsequent protest led to the 2000 Ecuadorean coup d'état which saw Mahuad's removal from office and the elevation of Vice President Gustavo Noboa to the presidency. The Noboa government confirmed its commitment to convert to the dollar as the centerpiece of its economic recovery strategy, successfully completing the transition from sucres to dollars in 2001. Following the completion of a one-year stand-by program with the International Monetary Fund (IMF) in December 2001, Ecuador successfully negotiated a new $205 million stand-by"
"January 9, 2000, the administration of President Jamil Mahuad announced its intention to adopt the U.S. dollar as the official currency of Ecuador to address the ongoing economic crisis. Subsequent protest led to the 2000 Ecuadorean coup d'état which saw Mahuad's removal from office and the elevation of Vice President Gustavo Noboa to the presidency. The Noboa government confirmed its commitment to convert to the dollar as the centerpiece of its economic recovery strategy, successfully completing the transition from sucres to dollars in 2001. Following the completion of a one-year stand-by program with the International Monetary Fund (IMF) in December"
"between 1887 and 1892, with only the silver-backed coins remaining in circulation. The decline of the international price of silver during the 1890s prompted Ecuador to switch to the gold standard on November 3, 1898, with the sucre tied to 732.224 mg of fine gold (equivalent to 2 shillings sterling). Like many other currencies, the Sucre became inconvertible shortly after World War I began in 1914 due to international political tension. Despite extensive measures to support the sucre's value, the exchange rate continued to rapidly decline. The sucre's exchange rate was eventually stabilized during 1926, at which point Ecuador re-established"
"and later, dollarization in Ecuador. In 1995, Hanke and Kurt Schuler published a currency board blueprint in Spanish that was widely circulated in Ecuador. In May 1996, Hanke traveled to Ecuador to encourage then-presidential candidate Abdalá Bucaram to pursue a currency board for Ecuador. Shortly thereafter, Bucaram raised the idea of a currency board while on the campaign trail. Following Bucaram's election, Hanke presented a dollarization proposal to members of the Ecuadorian government. But, by February 1997, Bucaram had been removed from office on insanity charges, and the dollarization idea lay dormant. However, in 1999, Ecuador's currency, the sucre, collapsed,"
"held on July 12, 1998. Mahuad won by a narrow margin. He took office on August 10, 1998. On the same day, Ecuador's new constitution came into effect. Mahuad concluded a well-received peace with Peru on October 26, 1998, but increasing economic, fiscal, and financial difficulties drove his popularity steadily lower. However, the coup de grace for Mahuad's administration was Mahuad's decision to make the local currency, the sucre (named after Antonio José de Sucre), obsolete and replace it with the U.S. dollar (a policy called dollarization). This caused massive unrest as the lower classes struggled to convert their now"
"of political and social unrest. Indigenous and poor Ecuadorans staged massive protests when the Jamil Mahuad government decided to adopt the U.S. dollar as the national currency in 2000. Gutiérrez disobeyed the government's order to repress the protestors and instead, together with fellow officers and their troops, joined the movement to depose president Mahuad. Days later, the Ecuadoran Congress deposed the president and the vice-president took the presidential chair Gutiérrez entered the national spotlight during the 2000 Ecuadorian coup d'état that unseated President Jamil Mahuad for three hours and forced him to abandon office after demonstrations in Quito by thousands"
"1871 at a rate of 8 reales = 1 peso. Silver coins were issued in denominations of ¼, ½, 1, 2, 4 and 8 reales, 1, 2, 4 and 8 escudos. In 1858, a coin denominated as 5 francos was issued. This was worth 8 reales and was issued to indicate the currency's link to the French franc. Coinage production was suspended in 1862. Private banks issued paper money denominated in reales between 1862 and 1871. For details, see Ecuadorian peso. Ecuadorian real The real was the currency of Ecuador until 1871. There were no subdivisions but 16 silver reales"
"U.S. dollar at that time. This convertibility forced an economic crisis when the United States entered its Great Depression (1929), which led to enact a new moratorium on payments on February 8, 1932. Since then, the traditional policy of deficit spending and credit, which funded the Ecuadorian economy between 1915 and 1925, regained its validity. Price instability driven by government spending and expansionary monetary policy forced the country to resort to another consultant, Manuel Gómez Morin, to reform the Central Bank Act and related monetary policy. Gómez Morin advised monetary authorities to channel credit to sectors of the economy deemed"
"Peruvian sol, and of the United States dollar and its fractions. Copper (""vellón"") was made legal tender to 5 décimos. Bank reserves were in silver coin and banknotes were convertible solely into silver. Ecuador was on a ""de facto"" silver standard and did not coin any gold between 1884 and 1892. The government had silver coin minted abroad through the offices of the private banks, usually taking 25% of the profit. The Government signed a contract, October 6, 1887, with Banco del Ecuador to withdraw Chilean coin and low-quality national coin and replace it with coin of standard fineness. A"
"Guayaquil""). This period ended with the (""Revolución Juliana"") of 1925. In 1998, Ecuador's banks faced the worst financial crisis in the country's history. The major banks today are the Banco del Pichincha, Produbanco, Citibank and Banco de Guayaquil. Banking in Ecuador Banking in Ecuador has a long history. At the time of the dissolution of Gran Colombia and its formation as a republic, Ecuador's economy was generally not monetized; gold and silver coins were circulated, and were brought into common use by successive currency laws. Little by little, with the growth of the nation, Ecuadorian banking also grew and was"
"East Caribbean dollar, although none of them have agreed to the treaty establishing the SUCRE and the regional payments clearinghouse. The SUCRE is named after Antonio José de Sucre, a leading figure in Latin America's independence struggle. Agreement in general terms for the currency was declared in 2009. The formal treaty establishing the regional payments clearinghouse was signed by the six Latin American presidents in Cochabamba, Bolivia, on October 17, 2009. (The former currency of Ecuador, one of the SUCRE's users, was also called the sucre, but was abandoned and replaced by the US dollar after the economic crisis in"
"losing 75% of its value against the U.S. dollar from the start of 1999 until the first week of January 2000. Shortly thereafter, Ecuadorian President Jamil Mahuad resurrected the dollarization idea. On January 9, 2000, he announced that Ecuador would abandon the sucre and officially adopt the U.S. dollar, putting an end to Ecuador's high inflation. In 2001, Hanke was appointed Adviser to Ecuador's Minister of Finance and Economy, to assist with the implementation of dollarization. In 2003, Hanke was awarded the honorary degree Doctor of Arts, ""Honoris Causa"" by the Universidad San Francisco de Quito, and in 2004, he"
"Sucre depreciated rapidly at the end of 1999, resulting in widespread informal use of U.S. dollars in the financial system. As a last resort to prevent hyperinflation, the government formally adopted the U.S. dollar in January 2000. The stability of the new currency was a necessary first step towards economic recovery, but the exchange rate was fixed at 25,000:1, which resulted in great losses of wealth. The severe effects of the financial crisis were especially visible in Ecuador because of the preexisting problems of poverty and national inequality. The general economic uncertainty resulted in loss of jobs and wealth, which"
"and the new. It was further arranged to have Banco del Ecuador import coin based on the French decimal system. García Moreno thus settled the basic problems of Ecuador's currency. In 1877 President Ignacio de Veintimilla authorized the free circulation of coin less than 900 fine, with the immediate result that good quality coin disappeared from circulation, replaced by coin from Chile and Bolivia that was only 500 fine. ""Banco del Ecuador"" issued notes for 2 & 4 reales and 1, 5, 10, 20, 100, 500 & 1000 pesos. ""Banco Nacional"", Guayaquil, issued notes briefly in 1871 for 2 and"
"dollar denominations, creating an informal dollarization of the financial sector, and a vulnerability to fluctuations in the exchange rate. Ecuador's public finances in the 1990s were heavily dependent on oil revenue, and public spending was high. In the short term, the financial crisis was triggered by a series of external shocks. A severe El Niño in 1997–1998 caused heavy rains and flooding that caused widespread crop failures and damaged infrastructure costing approximately 13% of its GDP. These shocks occurred soon after several financial crises in Asia (1997), Russia (1998), and Brazil (1998), which were damaging to the world economy. In"
"Colombian francos. ""Banco de Circulación y Descuento de Manuel Antonio de Luzarraga"", Guayaquil, issued Ecuador's first banknotes in 1859 in denominations of 1, 4, 5, 10, and 20 pesos. All its notes were redeemed. ""La Caja de Amortización"", Guayaquil, opened in 1860, issuing notes for 5 and 10 pesos in the amount of 100,000 pesos. It closed in 1861. ""Banco Particular de Descuento i Circulación de Guayaquil"", founded in 1861 by an association of 50 merchants, began issuing notes in 1862 in denominations of 1, 5, 10, and 20 pesos, adding a 50 and 100 in 1864, and notes for"
"Banking in Ecuador Banking in Ecuador has a long history. At the time of the dissolution of Gran Colombia and its formation as a republic, Ecuador's economy was generally not monetized; gold and silver coins were circulated, and were brought into common use by successive currency laws. Little by little, with the growth of the nation, Ecuadorian banking also grew and was particularly centered on the city of Guayaquil. After the came a period called the Banking Plutocracy (""Plutocracia bancaria"") that was dominated by private banking, especially by the Commercial and Agricultural Bank of Guayaquil (""Banco Comercial y Agrícola de"
"link the origin of the ""$"" symbol to the columns and stripes that appear on one side of the Spanish dollar. The term peso was used in Spanish to refer to this denomination, and it became the basis for many of the currencies in the former Spanish colonies, including the Argentine, Bolivian, Chilean, Colombian, Costa Rican, Cuban, Dominican, Ecuadorian, Guatemalan, Honduran, Mexican, Nicaraguan, Paraguayan, Philippine, Puerto Rican, Peruvian, Salvadoran, Uruguayan, and Venezuelan pesos. Of these, ""peso"" remains the name of the official currency in Argentina, Chile, Colombia, Cuba, Dominican Republic, Mexico, Philippines, and Uruguay. Millions of Spanish dollars were minted"
"Año 20""xx"", beginning in 2000; the largest proportion of coins in circulation are from the 2000 minting. With the exception of the one-cent coin, the coins are silver-colored; the ""un centavo"" coin is generally brass in color although a few were struck in copper color (unlike most other pennies, whose similar coins are of copper). The coins are minted by the Royal Canadian Mint and the Casa de Moneda de Mexico. Ecuadorian centavo coins Ecuadorian centavo coins were introduced in 2000 when Ecuador converted its currency from the sucre to the U.S. dollar. The coins are in denominations of 1,"
"release in common circulation, only in 2000 coin sets. Ecuador does not issue any banknotes, relying on U.S. issues. Ecuadorian centavos bear the numeric value along with the value spelled out in Spanish, and the legend of the Banco Central del Ecuador; the reverse is printed with the portrait and name of a notable Ecuadorian, the legend ""República del Ecuador"" and the country's coat of arms. The exception is the one-cent coin, which rather than bearing a portrait, is printed with a map of the Americas and bears the legend """" (""Ecuador, Light of the Americas""). Coins bear the date"
"local currency. The Spanish dollar was the coin upon which the original United States dollar was based, and it remained legal tender in the United States until the Coinage Act of 1857. Because it was widely used in Europe, the Americas, and the Far East, it became the first world currency by the late 18th century. Aside from the U.S. dollar, several other currencies, such as the Canadian dollar, the Japanese yen, the Chinese yuan, the Philippine peso, and several currencies in the rest of the Americas, were initially based on the Spanish dollar and other 8-real coins. Diverse theories"
"political and historical factors. In all long-standing currency substitution cases, historical and political reasons have been more influential than an evaluation of the economic effects of currency substitution. Panama adopted the US dollar as legal tender after independence as the result of a constitutional ruling. Ecuador and El Salvador became fully dollarized economies in 2000 and 2001 respectively, for different reasons. Ecuador underwent currency substitution to deal with a widespread political and financial crisis resulting from massive loss of confidence in its political and monetary institutions. By contrast, El Salvador's official currency substitution was a result of internal debates and"
"and it is not possible to demand an ""equivalent"" to this number. Transactions on a regional level are agreed directly between the groups. Beginning in 2000 the economic situation for most of the people in Ecuador became more difficult with the introduction of the US Dollar as national currency. During this crisis, Mauricio Wild (the co-founder of the Fundación Educativa Pestalozzi) resolved to create a decentralized network of groups to trade all over the country. These groups spread particularly in the rural areas of Ecuador. Today there are already about 140 Ecosimia-groups in Ecuador, operating in 13 provinces. In this"