The Central Bank determines the buy and sell prices of currency based on the outcome of the auctions. The Bank holds auctions sporadically, according to market conditions. In 1992 the formal dual exchange system was abolished and private sector exporters are no longer required to surrender foreign exchange to the Central Bank. Public sector exchange transactions, such as those resulting from exports by the state oil company, are still handled by the Central Bank, but the spread has been reduced to approximately 2 percent. Local banks offer sure financing, in both Dollars and Sucres, but the interest rates are substantially higher than those in the United States.
Commercial banks serve as the primary outlets for government backed financing.
In addition, capital can be raised through the public offer of corporate notes and equity shares via the Quito and Guayaquil stock markets. All private sector imports into Ecuador involve foreign exchange purchases on the free market. Typical terms of sale are confirmed letters of credit. Trade financing, in addition, is available from both U.S. and Ecuadorian commercial banks. The CAF's last major investment in Ecuador was in 1996 when it disbursed USD 321.8 million in loans.