Ecuador adopted the U.S. dollar as its official currency in 2000.
The decision came during a severe financial crisis. In 1999, Ecuador faced bank failures, a collapsing sucre, high inflation, recession, and a major loss of confidence in the national currency. President Jamil Mahuad announced dollarization on January 9, 2000, hoping to stabilize prices and the banking system.
The policy triggered intense political opposition and contributed to Mahuad’s removal from office later that month. Vice President Gustavo Noboa nevertheless continued the plan. Legislation adopting the dollar as legal tender was signed on March 9, 2000, at a conversion rate of 25,000 sucres per U.S. dollar.
A common mix-up is confusing the announcement year with the completion of the currency changeover. Sucre notes ceased to be legal tender in September 2000, while the transition from sucres to dollars was completed during 2001. Ecuador still issues its own centavo coins, but the U.S. dollar remains its official currency.