can anyone confirm that Ecuador is definitely converting their currency back to 'the sucre' along with Venezuela and gang?

Not "back" to the Sucre. Sucre is the name of the proposed new currency for the ALBA economic block - sort of a Latin American "Euro" - no relation to Ecuador's old currency of the same name.

As I understand it, the target date for introduction is sometime in 2010, but remember, this is Latin America, so that date may be a tad optimistic.

I don't see this as heralding the demise of the dollar though. If anything, it will create more demand for dollars in the Sucre block, which they certainly have the means (oil) to acquire. Bear in mind that if the Sucre is to be fully convertible they will need a large stash of dollars to establish the exchange rate. This arises from the fact that (China aside) the US is still their major export market and will be for some time to come. Logically then, the dollar/sucre cross rate would be the basis for all other currency conversions.

What's really interesting about this arrangement though (if it ever comes to pass) is that it will cut the IMF off at the knees. As long as Brazil and Venezuela are willing to fund the poorer nations there is no longer a role for the IMF, thus less US influence in LatAm banking and finance, at least so the theory goes.

Personally, I wish them luck.

ebear