Ecuadorian trade unions are threatening to call mass protests this month against the worsening economic conditions caused by last April's replacement of Ecuador's currency - the sucre - with the dollar.
After many deliberations with his economic advisers President Jamil Mahuad announced that the sucre was to be ditched altogether.
The national currency, the sucre , would be replaced by the US dollar.
Mahuad's proposal to dollarize the economy, scrapping the sucre , the national currency, in favor of US greenbacks, sparked widespread opposition and mass protests that ended in the military overthrow.
But critics said it was a last-ditch effort by Mahuad to stay in power, and that abandoning the sucre would devastate many Ecuadoreans' sucre-based savings.
In addition to proposing the replacement of the sucre with the dollar at the current exchange of 25,000 to one, the proposal includes bank and labor reforms that would make Ecuador more enticing to foreign investors.
A key plank of the government plan was to replace the country's currency, the sucre , by the US dollar.
Ecuador abandoned the sucre for the U.S. dollar last year.
Galapagos is part of Ecuador and the local currency is the sucre .
The exchange rate announced by Mahuad, 25,000 sucres to the dollar, testifies to the rapid impoverishment of the Ecuadorian masses over the past year, during which the sucre's value has fallen by 82 percent.