Denominations of Ecuador currency:
Banknotes of Ecuador currency:
The banknotes of the following denominations are in circulation:$100, $50, $20, $10, $5.
Coins in circulation:
Coins of the following denominations are in circulation in Ecuador. They are $0.01, $0.05, $0.10, $0.25, $0.50 and $1.History of Ecuador currency:
Formerly, Ecuador currency was sucre. Due to frequent devaluation, dollarizing the currency was the alternative opted for. To this effect the national policy pertaining to dollarization was suggested in the year 2000. Ecuador stopped printing sucre banknotes in September, 2000 and completed the process of dollarization.United States Federal Reserve and Ecuador currency:
Formerly, the Central Bank of Ecuador was responsible for issuing banknotes and fixing domestic interest rates. Presently, the United States Federal Reserve is responsible for printing banknotes. Ecuador buys dollar from the United States Federal Reserve. The United States Federal Reserve also decides on lowering or raising the rates of interest.Effect of dollarization on Ecuador economy:
Dollarization affected the different sectors of the economy to a great extent. This particularly holds true for the banking sector.Prior to dollarization, many banks in Ecuador declared bankruptcy due to the fiscal crisis of 1999. Many banks had to face closure in the process. Compensation was provided to several investors and most of the customers were paid back for losing their money.
Dollarization, had a marked effect on the Ecuador currency. The banks emerged stronger and have a stronger investor base. The rate of interest has dropped facilitating investment from clients.
