Understanding currency in Ecuador: What you need to know 

When planning a trip to Ecuador, one of the first things you should be aware of is the country’s currency. Understanding how money works in Ecuador will help you manage your budget, avoid confusion, and make your experience smoother and more enjoyable. 

Official Currency: The US Dollar 

Ecuador’s official currency is the United States Dollar (USD). This makes it easy for travelers from the U.S. since you don’t have to exchange money upon arrival. Ecuador adopted the U.S. Dollar as its official currency in the year 2000, following a period of economic instability and a severe banking crisis. This move helped stabilize the country’s economy and allowed the government to prevent rampant inflation. 

Coins and Banknotes in Ecuador 

While the U.S. Dollar is the official currency, you’ll notice that there are some unique coins used in Ecuador. These coins, called “centavos,” are equivalent to U.S. cents. The U.S. coins are used alongside these local coins. Here’s a breakdown of the coin and banknote denominations you’ll encounter: 

Coins: 1 cent, 5 cents, 10 cents, 25 cents, 50 cents, and $1 (Ecuador uses $1 coins in addition to the paper bill) 

Banknotes: $1, $5, $10, $20, $50, and $100 

You’ll find that the use of $1 coins is more common in Ecuador compared to the U.S., and many businesses are accustomed to receiving or giving them as change. 

Credit and Debit Cards 

Credit and debit cards are widely accepted in urban areas, including hotels, restaurants, and shops. Visa and MasterCard are the most commonly accepted cards, though American Express can be used at select businesses. However, in rural areas, small shops, or local markets, cash is often preferred, so it’s a good idea to always carry some U.S. dollars in cash. 

Tipping in Ecuador 

Tipping is customary in Ecuador, although not always mandatory. In restaurants, a tip of around 10% is appreciated if service is not already included in the bill. Taxi drivers do not expect a tip, but rounding up the fare is a common gesture of appreciation. For hotel staff, a small tip for housekeeping and bellhops is also customary. 

Money Exchange and Best Practices 

While the U.S. Dollar is the official currency, you can still exchange foreign currency at banks or official money exchange offices if needed. However, it’s generally easier and more economical to use U.S. dollars throughout your trip. Make sure to carry smaller bills, as some places may not have change for large notes like $50 or $100 bills.