If you travel to a new country, it is helpful to do research. For example, what currency does Ecuador accept? As an American, you will probably be glad to hear that the official currency in Ecuador is the US Dollar ($). That is nice and easy and saves you exchange fees. If you are from Europe or any other country, you will have to exchange your local currency for US Dollars.
I will help you with some common questions regarding paying in Ecuador.
Should I exchange to USD before I travel to Ecuador?
When you exchange at home, you may get a less favorable rate than when you swap in Ecuador. It is also cheaper to withdraw your money from an ATM than to exchange it at an exchange office as they charge you for using their service.
However, you may feel more comfortable when you already have a small amount of cash on you. You should be aware that it may sometimes be hard to find an ATM (mainly if you visit smaller towns), it could be out of service, or your card is not working right away. As Ecuador heavily focuses on cash, it would not be wrong to have some on hand.
If you are traveling from the USA, always bring some cash as you do not have any charges.
It is unnecessary to exchange your money for USD before coming to Ecuador.
Money Exchange in Ecuador
Most things are paid in cash in Ecuador, especially in smaller towns. So you should make sure you always have some money in your wallet. You can pay with all standard credit cards in the mall or supermarket, such as VISA, Mastercard, or American Express. If you have a European Maestro card, you will have trouble paying with your card in the shops or restaurants as this type of payment is not supported.
Before you leave for your trip, make sure that your bank knows that you are traveling and that you have the correct settings for international cash withdrawals to avoid any issues that could arise.
So how do I pay if I have a Maestro card?
I would recommend you take a credit card with you on your travel. It is always good to not be dependent on just one card, just in case you lose one card, it gets stolen, or it is just not working. If you have another one with you, this can save you a lot of trouble and give you peace of mind during your trip!
If you do not have a Visa or Mastercard, it is wise to apply for one at home before you leave. If you do not feel comfortable owning a credit card, prepaid cards also exist. This way, you have the benefits of paying by card (and carry less cash), but you won’t overspend.
Can I use any ATM?
Most ATMs accept all cards to withdraw cash. Look for the sign of your type of card at the ATM to make sure you can take out money. To withdraw cash, you will have to pay a fee to the bank, which can vary between $0,50 – $3,00. This fee excludes the fees your bank charges. So instead of taking out a small amount several times a day/week, it is more advantageous to withdraw a little more to keep your costs as low as possible.
Ecuador has many banks. The biggest banks are Banco Pichincha, Produbanco and Banco del Pacífico and it is safe to use their ATMs. When you withdraw money, make sure that you use an ATM of a bank because ATM scams are not uncommon. Other banks that are big in Ecuador are: Banco Guayaquil, Banco International, Banco Bolivariano. As long as you have an ATM from a bank, you will be fine!
Why does Ecuador have the US Dollar as a currency?
Until 2000 Ecuador used to have its currency called the Sucre. Due to the devaluation of the Sucre, Ecuador was in a deep economic crisis in 1999. In less than 70 years, the Sucre lost its value rapidly. From 14 Sucre for 1 Dollar to 25,000 Sucre for 1 dollar.
The government of Ecuador made a deal with the US government and replaced the Sucre in 2000 with the US Dollar.
Despite having the US Dollar as a national currency, Ecuador has its own centavos. The coins 1, 5, 10, 25, and 50 cents have the year of minting, the legend of Banco Central del Ecuador and Republic del Ecuador on the obverse and reverse.
In Ecuador, the $1 coin is commonly used, while the $1 bill is used in the USA.
In Quito and Cuenca, you can find Museo Numismático of the Central Bank of Ecuador. Here you can learn more about the history of the Sucre and the change to the US Dollar.
So how much money would I need in Ecuador?
When you think about South America, you may expect that everything is super cheap. Unfortunately, this is not the case for Ecuador, mainly since their national currency is USD.
A country like Colombia or Bolivia is very cheap due to its currency. If you have dollars or euros, you have a very favorable exchange rate that makes a living very affordable. In Ecuador, you do not have this advantage. Nevertheless, Ecuador is not expensive.
Let’s discuss some daily costs that you will make in Ecuador. For a hostel, you can find a decent place for $15 per night, and a hotel should not cost you more than $50 per person per night. Lunch is called “almuerzo,” and many restaurants have a menu daily for $3,50, including a soup, main plate, and a juice.
If you want to eat at a more fancy restaurant, you can expect the same prices as in the USA or Europe. A plate would cost you around $20. But a burger with fries and a drink would be less than $10.
Depending on your trip, you can set your budget. You can make your trip as cheap or expensive as you would like. It is not difficult to find cheap food and places to stay, but if you want some more luxury, you will have to calculate this in your travel budget.
