Currency in Ecuador: what to use and how to exchange

Ecuador dollarised in 2000, so prices, wages and savings are all quoted in USD. That removes the exchange-rate guesswork that comes with most of South America: what you see on a menu is what you pay, and US coins and notes are legal tender. Ecuador also mints its own small coins in the same sizes and values as US coins, and they circulate side by side. You may get a mix in change; both spend normally inside the country.

Because the currency is the dollar, the practical question is not which money to change but which form of dollars to carry. Banks and exchange houses in Ecuador will take euros, Colombian pesos or Peruvian soles, but rates are thin and the service is concentrated in the big cities. Most travellers simply arrive with dollars or withdraw them locally.

For day-to-day spending, small notes are the whole game. Market stalls in Otavalo, bus fares, taxi rides, small-town bakeries and national-park entry points often cannot break a $20, let alone a $50. Vendors also inspect notes closely and will hand back anything torn, written on, or with a heavy crease. Ask your bank at home for clean $10s and $20s, and keep a stack of $1s and $5s for the first day.

Cards work in the places you would expect: city hotels, supermarkets, chain restaurants, larger tour operators and Galápagos cruise payments. Outside those, cash is still the default. Rural buses, most markets, small family hostels and many taxis take cash only. If you are heading to the Amazon or the less-visited coast, plan to arrive with enough cash for the whole stay.

ATMs are common in Quito, Guayaquil and Cuenca and thinner elsewhere, including parts of the coast, the Amazon and the smaller Galápagos islands. Withdrawals are in USD, which is convenient, but fees and per-withdrawal limits vary by bank and by your home card, so take a few larger withdrawals rather than many small ones. Carry a backup card kept separately from the first.

Change nothing at the airport unless you must: rates there are the weakest you will see, and if you already hold dollars there is nothing to change. If you arrive with euros or another currency, use a bank branch or an established exchange house in Quito or Guayaquil during business hours rather than a street vendor.

Keep your cash split between two places, and carry a photocopy or phone photo of your passport rather than the passport itself on market days. Card skimming exists in tourist areas; use ATMs inside banks, malls or hotels where you can, and cover the keypad.

Budget in round numbers: a casual lunch, a bus ride and a coffee are all small-change purchases, so a day of local eating and transport can run on a handful of $5 notes. Big-ticket items — Galápagos cruises, multi-day treks, flights — are usually paid by card or bank transfer before you arrive.

Tipping is simple because the currency is familiar: 10% service is often already added to restaurant bills, so check before adding more. Guides, drivers and Galápagos naturalists are tipped separately in cash.