Ecuador's constituent assembly has approved a new draft constitution that will be put to a referendum in September.

Ecuador's President Rafael Correa (l) and his Nicaraguan counterpart Daniel Ortega, 14 Jul 2008

The new charter approved late Thursday would grant President Rafael Correa broad powers, including functions currently held by the Central Bank.  It would also modify term limits, allowing him to seek re-election.

President Correa has said the constitution should be changed to limit the power of Ecuador's major political parties.

However opposition members say the real reason for the change of constitution is to keep the leftist president in power and increase his control of the country.

Some information for this report was provided by AP and Reuters.