How can Ecuador use the American dollar?

Answer 1

Because there own currency is so inflated that no one will use it?

Answer 2

The U.S Dollar is the currency in Ecuador now. Before, the Ecuadorian currency was the "Sucre". 1 U.S. dollar=25,000 sucres.

In Ecuador, the U.S. Dollar is being used in the same way the Sucre was used once. The change in the currency took place after the Sucre lost all of its value and the U.S. dollar will keep a more stable economy in the country.

Other coins have been implemented to the currency system with the same value as the dollar, but made in Ecuador. I mean, in Ecuador we also have coins that have the same value as $0.05, $0.10, $0.25, $1.0, etc;, but they look different than the U.S. currency.

Personally, I can tell you that most people in Ecuador have learned how to use the new currency. If you go from here to Ecuador, it's going to be pretty easy to manage the money over there because even the prices are similar.

Answer 3

Costs in Ecuador are among the lowest in Latin America. From year to year, prices for travel basics like transportation, meals and lodging may vary up or down by as much as 50%, but they remain cheap by Western standards. On 14 March 2000, President Gustavo Noboa ratified a law making the US dollar legal tender in Ecuador. The dollar is replacing the sucre at a rate of US$1 = 25,000 sucres. The government claims 'dollarization' will reduce Ecuador's chronic inflation (approaching 100%), and decrease the national debt. Ecuador has a two-tier pricing system in effect, and foreigners pay a lot more for certain services (mainly transportation and top-end hotels) than locals do. It's colloquially known as the 'gringo tax' and is avoidable by staying in budget to mid-range hotels and by taking buses rather than trains or planes. Doing so, travelers on a budget should be able to get by on as little as US$10 per day, including the periodic indulgence. A less frugal approach to visiting Ecuador might set you back US$50 to US$80 per day, allowing more comfort in travel and sleeping arrangements and a more interesting diet. Living like visiting royalty is also an option, and you can play the part for a modest outlay of around US$150 per day.
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Answer 4

many countries accept American dollars because of their worth

Answer 5

many countries have wide use the dollar for transactions, as it is may be more stable than the currency in their country.