Dollarization
After decades on the slide against the dollar, the national currency, the sucre , was fixed in early 2000 at an exchange rate of US$1 to 25,000 sucres. Both US dollars and Ecuadorian sucres were legal tender until 2000, by which time the sucre was to have been phased out and replaced by standard US dollar bills as the country's official currency. Small change was planned to be a mixture of US coinage and coins minted in Ecuador (such as the $0.2 piece, which doesn't exist in the US), probably with Ecuadorian national symbols and emblems. All costs in this guide are quoted in US dollars.

However, as money matters are so unpredictable in Ecuador, not least due to significant opposition against the dollarization scheme, it's worth noting that the Ecuadorian sucre ("S/") comes in notes of 50,000, 20,000, 10,000 and 5000 denominations. Notes for 1000, 500, 100 and 50 sucres are largely extinct and have been replaced by coins.

Whatever currency is in use, there's likely to be a shortage of small change and low-denomination notes, particularly in rural areas, so it's a good idea to break up larger notes whenever you have the opportunity

Costs
Ecuador has been a bargain destination in recent years, and despite the current economic volatility this is unlikely to change too much in the near future. A budget of $15 a day is quite sufficient to get by on, with the occasional luxury thrown in, while for $25 a day you can live quite comfortably.

Typical accommodation prices are usually around the $5 mark for a standard bottom-end double room, falling to as little as $2-3 in really basic places. Above $15 and you're into mid-range territory, while anything over $40 a double is likely to be pretty smart. The price of food is also very low, with an à la carte main course typically costing $2-3; a set lunch or dinner even less. If you want to cut food costs still further, local markets are an excellent source of provisions, particularly if you have some Spanish and are willing to haggle. Transport also currently offers excellent value for money - $1 buys you around an hour's worth of bus travel, though fares may rise following the abolition of fuel subsidies.

The most widespread hidden cost in Ecuador is IVA ( Impuesto al Valor Agregado ), a tax of 12 percent which is added to most goods and services. In lower-end restaurants and hotels it's taken for granted that IVA is included in the quoted price, though in smarter places it may not be (look for the small print at the bottom of menus; in hotels, be aware that you may be quoted prices excluding tax). It's then whacked on to the end of the bill by both eating and accommodation establishments, often along with a further 10 percent service charge, making the final total 22 percent more than you might have bargained for. Car rental is almost always quoted without IVA. If in doubt, always clarify whether prices for anything from souvenirs to room rates include IVA.

A practice of charging foreigners much higher prices than Ecuadorian residents is in operation at a few of the main tourist centres, most notably in the Galápagos. Covering such things as national park entrance fees, domestic flights, and top-end hotel accommodation, it's not intended as a rip-off so much as a way of neutralizing the inordinate spending power of foreigners, preventing spiralling costs and allowing nationals the chance of affording their country's attractions. If you have a censo , this piece if ID often satisfies officials that you're entitled to pay the lower rate.

Finally, when you leave Ecuador by air, you must pay $25 airport tax in cash.

Money, credit cards and getting cash
Although ATMs are increasingly widespread in Ecuador, it's still best to take most of your money in the form of travellers' cheques . Go for low denominations such as $20 and $50 and the better known brands, such as American Express and Visa (Thomas Cook and Citibank cheques are usually accepted too). You can't yet use them as cash and will have to change them in a bank or casa de cambio (exchange bureau). Casas de cambio are generally open for longer hours (though they're usually closed on Sun) and offer faster service, but levels of commission vary, so it's worth shopping around. Bear in mind that banks and exchange bureaux can be hard to find in smaller towns, particularly in the Oriente and on the coast. If you expect to be away from the cities for any length of time, change an adequate amount of money. With dollarization it will probably become easier to change cheques in remote places (perhaps at a hotel or pharmacy), but you should always carry dollars cash with you for emergencies. Scruffy, torn or damaged dollar bills are often refused.

By far the easiest and most convenient way to get cash is to withdraw it at an ATM , using your credit card or debit card. Visa and cards related to the Plus system are accepted at many ATMS in branches of Filanbanco, Banco la Previsora, Banco del Austro and Banco de Guayaquil, and MasterCard and Cirrus-related cards are useable at the machines owned by Banco del Pacífico and most branches of the Banco de Guayaquil. A handling charge of around 1.5 percent will usually be deducted from your account. A small number of machines also accept American Express cards. Don't rely solely on ATMs, however - you may get your card stolen, or lose it, and Ecuador's electronic banking systems go down with inconvenient regularity. Moreover, you won't find that many ATMs outside of medium-sized towns. If the ATM isn't working you can often get a cash advance on your card inside the bank: this is usually a relatively painless process, though you may find yourself at the mercy of long queues, short opening hours and administrative delays.

Besides their use as a way of getting cash, credit cards can also be useful for emergencies, surprise costs, deposits on car rental and the occasional splurge in a smart hotel or restaurant. Again Visa and MasterCard are the most widely accepted (note that in the Galápagos, MasterCard is just about the only option), followed by Diner's Club and American Express. You may have to pay a surcharge of around 10 percent on purchases in many places, though this may come down once dollarization is under way. Cheaper hotels, restaurants and shops are unlikely to accept credit cards even when they have stickers on the door; check first. If you're taking several credit cards out with you, it's worth getting card-protection insurance before you leave home; this is offered by most banks and card issuers and normally cost around £10/US$15 a year. Make sure you keep a written record of your card numbers and the numbers to call if your card is lost or stolen.

If you need emergency cash in a hurry, you can have it wired to you ready for collection within twenty minutes, though it's an expensive option and really only suitable as a last resort. Rates at Western Union Money Transfer (UK tel 0800/833833; US tel 1-800/325-6000; Aus tel 1800/649 565; NZ tel 09/270 005) start at £14/US$20 for £100/US$150, rising to £105/US$150 for £3000/US$4500. They have hundreds of agents across Ecuador; call 02/508085 in Quito, or tel 04/233555 in Guayaquil, to find your nearest office. Moneygram (tel 0800/8971 8971) wires money from UK post offices, to about a hundred agents in Ecuador, many of them branches of Banco del Pacífico. In Ecuador, call free on 999119, followed by 800 592 5755, to find the nearest agent.