"Currency board A currency board is a monetary authority which is required to maintain a fixed exchange rate with a foreign currency. This policy objective requires the conventional objectives of a central bank to be subordinated to the exchange rate target. The main qualities of an orthodox currency board are: The currency board in question will no longer issue fiat money but instead will only issue one unit of local currency for each unit (or decided amount) of foreign currency it has in its vault (often a hard currency such as the U.S. dollar or the euro). The surplus on"
"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"
"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"
"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"
"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"
"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,"
"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"
"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"
"1000-sucre note was finally put into circulation in 1973. The next change came in 1975 when the back of all circulating notes was redesigned to show the new national coat of arms. A small-size 500 sucre note appeared at the end of the 70s. Beginning in 1984, the title ""Banco Central del Ecuador"" appears on the notes, without ""Sociedad Anonima"". And a printer's imprint no longer appears on the notes. As inflation gained momentum, higher denominations were introduced: 5000 in 1987, 10,000 in 1988, 20,000 in 1995 and 50,000 in 1996. Notes used during the last years of the sucre"
"sucre on the gold exchange standard, with devaluation (58.8%) to 300.933 mg Au (equivalent to US$0.20). The new cóndor was 8.35925 g 900 fine, valued at 25 sucres (equivalent to the US half eagle). Banco Central's statutes were approved June 3, it was formally inaugurated August 10, and it began operations October 1. Ecuadorian gold was recoined at Birmingham, silver at Philadelphia. Private banknotes ceased to circulate after 1927. ""Caja Central de Emisión y Amortización"" overprinted certain private banknotes of 1, 2, 5, and 10 sucres with its own name, domiciled them Quito, and put them into circulation in December"
"national coin was allowed to circulate in Ecuador, and Ecuador's monetary system was finally unified. But the total face value of coin in circulation had been reduced. In order to alleviate the shortage of small change, the President authorized (June 14, 1890) the minting of 30,000 sucres in copper coins of 1/2 and 1 centavo. The fall in the price of silver had been gradual in 1884–1890, but became very pronounced after 1893, and the government began looking at ways to adopt the gold standard. In 1897, the Monetary Commission reported that of the 4,790,730 sucres that had been minted"
"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 ="
"the gold standard with the sucre equal to 300.933 mg fine gold or $0.20 USD (a devaluation of 58.8%). Following the suspension of the gold standard on February 8, 1932, foreign exchange controls were adopted on April 30 which fixed the official buying rate at 5.95 per U.S. dollar. Once the price of silver rose above the nominal value of most silver coins during 1930s, Ecuador banned the export of silver on May 17, 1935. This was followed by several adjustments to the nation’s foreign exchange system as the sucre continued to depreciate. The foreign exchange controls were finally lifted"
"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"
"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"
"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,"
"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"
"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"
"Montecristi, later moving to Guayaquil. It issued notes for 1, 5, and 10 pesos. copper, Birmingham, dated 1872 Ecuador's monetary unit, the peso, was renamed ""Sucre"" (decree of March 22, 1884, effective April 1), equal to 22.500 g fine silver. The Sucre was named after the Latin American revolutionary Antonio José de Sucre. The 1884 monetary law permitted free circulation of gold coin of France, Italy, Belgium, Switzerland, Colombia, Peru, and the United States. As for silver, the law permitted the import of 5-franc pieces of France, Italy, Belgium, and Switzerland, of the pesos of Chile and Colombia, of the"
"The ""Banco del Ecuador"" issued provisional notes for 80 centavos and 4 sucres between 1885 and 1887 due to a conversion rate of 5 pesos = 4 sucres for the earlier notes of this bank. Regular notes were issued until 1926 in denominations of 1, 2, 5, 10, 20, 50, 100, 500 and 1000 sucres. 1 sucre notes were issued by the ""Banco Anglo-Ecuatoriano"" in 1885 and 1886, and by the ""Banco de Quito"" in 1885. The ""Banco de la Unión"" issued notes between 1887 and 1895 in denominations of 1, 5, 10, 20 and 100 sucres, while the ""Banco"
"two agencies, and overcame difficulties between the Central Fund Release and the new institution finally on August 10, 1927 the Central Bank of Ecuador opened its doors. On 25 August 1927, Main Branch opened in Guayaquil. The new institution's first task was to stabilize and unify the currency. To achieve this, the Issuer Institute won the ""gold standard exchange"", a monetary system set the price of the sucre in terms of gold; their basic objective was to keep the price of the sucre fixed at 0.300933 grams of fine gold, or one fifth of the fine gold content of the"
"2001, Ecuador successfully negotiated a new $205 million stand-by agreement with the IMF in March 2003. Buoyed by higher oil prices, the Ecuadorian economy experienced a modest recovery in 2000-01, with GDP rising 2.3% in 2000 and 5.4% in 2001. GDP growth leveled off to 3.3% in 2002. Inflation fell from an annual rate of 96.1% in 2000 to an annual rate of 22.4% in 2001. Economic history of Ecuador This article is about the economic history of Ecuador and its evolution from colonial to modern times. Colonial Ecuador was governed first by the Viceroyalty of Peru and then by"
"and 25 per USD by 1970. The Sucre maintained a fairly stable exchange rate against the U.S. dollar until 1983 when it was devalued to 42 USD and a crawling peg was adopted. Depreciation increased rapidly and the Sucre’s free market rate was over 800 per USD by 1990 and nearly 3000 by 1995. The sucre lost 67% of its foreign exchange value during 1999; its value nosedived an additional 17% over the course of one week, ending at 25,000 sucre per USD on January 7, 2000. On January 9, President Jamil Mahuad announced that the US dollar was to"
"Lower levels of currency cooperation have been practiced in the Americas before. Some nations such as Argentina and Brazil have at times tied their currency to the U.S. dollar. Some of them, such as Aruba, Bahamas, Barbados, and the Organisation of the Eastern Caribbean, still do. The U.S. dollar is officially accepted alongside local currencies in El Salvador (since 2001), Costa Rica, Nicaragua, Peru, Honduras, Panama, Bermuda and Barbados, although in practice two of these countries (El Salvador and Panama) are fully dollarized. In 2000, Ecuador officially adopted the U.S. dollar as its sole currency. In a few areas of"
"ALBA leaders agreed at a summit in Bolivia to create a common regional currency. ""The document is approved,"" said Bolivian President Evo Morales, the summit host. President Hugo Chávez (Venezuela) announced ""The sucre [is] an autonomous and sovereign monetary system that will be agreed upon today so that it can be implemented in 2010."" As of 2015, the virtual currency is being used to compensate trade between Bolivia, Cuba, Nicaragua, and especially Ecuador and Venezuela. In addition, Suriname is a ""special guest member"" that intends to become a full member. Established in 2005 and based on earlier agreements between ALBA"
"centavos). The 1898 law also made the sovereign legal tender. A subsequent decree (October 29, 1908) authorized a gold 1/5 cóndor and vellón coins (75% copper, 25% nickel) of 1/2, 1, 2, and 5 centavos. ""Banco del Ecuador"" and ""Banco Comercial y Agricola"" continued issuing. They were joined by two new issuing banks. ""Banco del Pichincha"", Quito, issued notes for 1, 5, 10, and 20 sucres from 1906. A second issue was for 1, 5, 10, 20, 50 & 100 sucres. ""Banco del Azuay"", Cuenca, issued notes from 1913 for 1, 2, 5, and 10 sucres. copper-nickel, Heaton mint, dated"
"useless sucres to U.S. dollars and lost wealth, while the upper classes (whose members already had their wealth invested in U.S. dollars) gained wealth in turn. Under Mahuad's recession-plagued term, the economy shrank significantly and inflation reached levels of up to 60 percent. History of Ecuador (1990–present) This article is about the history of Ecuador from 1990 to the present. In 1992, Sixto Durán Ballén won his third run for the presidency. His tough macroeconomic adjustment measures were unpopular, but he succeeded in pushing a limited number of modernization initiatives through Congress. Durán Ballén's vice president, Alberto Dahik, was the"
"None of the citizens pay taxes. The town of Daule is about 107 square kilometers in area. The population of Daule is about 1,755 people, of which 54.3% is male and 45.6% is female. In a late 1990s a series of financial crises caused the government to abandon its own currency, the sucre, and adopted the U.S. dollar. Ecuador formally adopted the U.S. dollar in the year 2000. Introducing a stronger currency caused great inflation that deeply affected the agricultural industry. The town of Daule only has two well defined small markets and one bar, however residents do sell various"
"between 1999 and 2010. In 2001 it was estimated at 40% of the population, while by 2011 the figure dropped to 17.4% of the total population. This is explained to an extent by emigration and the economic stability achieved after adopting the U.S. dollar as official means of transaction (prior to 2000 the Ecuadorian ""sucre"" was prone to rampant inflation). However, starting in 2008 with the bad economic performance of the nations where most Ecuadorian emigrants work, the reduction of poverty has been realized through social spending mainly in education and health. Oil accounts for 40% of exports and contributes"
"by Spain during the 16th century, achieving independence in 1820 as part of Gran Colombia, from which it emerged as its own sovereign state in 1830. The legacy of both empires is reflected in Ecuador's ethnically diverse population, with most of its /1e6 round 1 million people being mestizos, followed by large minorities of European, Amerindian, and African descendants. Spanish is the official language and is spoken by a majority of the population, though 13 Amerindian languages are also recognized, including Quichua and Shuar. The sovereign state of Ecuador is a middle-income representative democratic republic with a developing economy that"
"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"
"is in green. Economy of Ecuador The economy of Ecuador is based mostly on exports of oil, bananas, shrimp, gold, other primary agricultural products and money transfers from nearly a million Ecuadorian emigrants employed abroad. In 2002, oil accounted for about one-third of public-sector revenue and 40% of export earnings. Ecuador is the world's largest exporter of bananas ($936.5 million in 2002) and a major exporter of shrimp ($251 million in 2002). Exports of non-traditional products such as flowers ($291 million in 2002) and canned fish ($333 million in 2002) have grown in recent years. Industry is largely oriented to"
"its currency. The national currency, the ekwele, had previously been linked to the Spanish peseta. The discovery of large oil reserves in 1996 and its subsequent exploitation contributed to a dramatic increase in government revenue. , Equatorial Guinea is the third-largest oil producer in Sub-Saharan Africa. Its oil production has risen to , up from 220,000 only two years earlier. Forestry, farming, and fishing are also major components of GDP. Subsistence farming predominates. The deterioration of the rural economy under successive brutal regimes has diminished any potential for agriculture-led growth. In July 2004, the United States Senate published an investigation"