During the course of the past four years, Ecuador can look back upon turbulent times.
The dramatic economic development in the 90s led to a negative balance of trade for the first time in 1998.
Decreasing petroleum prices of occasionally only US$ 7 per barrel and the damage in the billons due to the climate catastrophe El Niño led to crashes in several sectors of the economy. The result was a dramatic devaluation of the Sucre.
At the beginning of 2000 the most valuable paper money - 50 000 Sucre - was only worth US$ 2. Increasing prices of basic foods and medicine were facing stagnating wages in construction, industry and agriculture. This quickly led to the impoverishment of large strata of the population. Shortly before his removal from office, former president Mahuad decided upon a permanent conversion rate to the dollar.
In April 2001 the Sucre was taken out of rotation after 100 years and replaced with the dollar as the official currency.

Ecuador continues to follow a course of regional integration, especially within the Andean community. A long-term goal is becoming a member of Mercusor. The all American free trade zone ALCA, which was initiated by the USA, is being fully supported by Ecuador.