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ECUADOR

Send Money To Ecuador

Despite being South America’s smallest country, Ecuador’s rich cultural attractions, landscapes and natural wonders make it stand tall around its bigger neighbours. Ecuador is home to a beautiful pacific coastline, lush jungle and volcanic mountains. Visitors will find its people very charming and its cities bustling with life.

Ecuador shares borders with Colombia and Peru. It has a coastal border along the Pacific Coast. The country has a population of nearly 16 million people. The official language is Spanish, although other pre-colonial languages are still widely spoken.

Ecuador is a multi-party democracy and governments are elected every four years. Ecuador’s political contests are sometimes very closely contested and can be quite eruptive. In fact, there is a common joke that Ecuador’s politics and volcanoes usually erupt at around the same time. The recent presidential elections are a good example.
Ecuador

Popular money transfer services that send to
ecuador

  • ClearFX
  • UKForex
  • CurrencyCart

Currency Used

It’s been around 17 years since Ecuador decided to replace its national currency and adopt the US dollar. The plan was for both currencies to continue to be in circulation as the dollar gradually took over. The central bank would no longer print sucre notes (former currency) or issue debts in that denomination.

The move followed a period of spiralling inflation, currency inflation and a debilitating banking crisis and was viewed by many as an attempt to revive the country’s failing economy. The sucre notes were cleared out at the rate of 25,000 for every dollar. The only local currency remaining in Ecuador is centavo coins.

Now when the US dollar appreciates against other Latin American currencies, goods in Ecuador become expensive compared to the neighbours. The result is Ecuadorians crossing the borders in droves to purchase commodities in other countries.

As to whether dollarisation has been good for Ecuador, the jury is still out. Proponents will argue that it eliminates inflation expectations and reduces the rate of inflation. The risk of the local currency depreciating is also eliminated. 

Send Money with Bank Deposit

Since the domestic currency is the US dollar, foreign exchange accounts can be held both at home and abroad. There is no distinction made between the accounts at home and the ones abroad. Converting domestic currency accounts into foreign currency is allowed. This also applies to non-resident domestic accounts. There are also no requirements to report to the central bank for these activities.

All capital outflows in Ecuador are subject to a five percent tax. Transactions that involve investment securities and money market instruments are subject to some controls.

External credits that mature in a period of over one year should be registered with the central bank within 45 days.

One of the effects of dollarisation is that it took away a lot of responsibilities from the central bank. Since it has no powers to print the currency used in the country, the methods when it comes to regulating money transfers are radically different compared to a central bank that prints its country’s local currency. Its powers and influence are significantly diminished.

Send Money Through Cash Pickup

In Ecuador, moving funds from the sender’s account to the recipient’s account can be quite a challenge. Even something as easy as an electronic wire transfer is not that straight forward. That is why it is very important to plan ahead if you are an expat thinking of sending money through bank deposits in Ecuador. Transfers can take forever before they are completed.

You have to inform the financial institution of your intentions before leaving for Ecuador. That is the best time for them to inform you of all their requirements. You may also want to ask for a written confirmation as evidence of any understanding reached.

It is only after you lay the necessary groundwork that you move to the next step. Even all this will not guarantee you that the transaction will be seamless. But the precautions are still important in helping the course of your transaction.

Money Transfer Regulations

The fact that Ecuador’s official currency is the US dollar makes cash pickup transactions very easy to understand for both the sender and the recipient. There are no exchange rate calculations to think about if the money involved is in dollars.

Ecuador has a huge diaspora population which makes cash pickups a very popular method of sending money to loved ones. The transactions take a pretty short time and don’t need a lot of documentation.

Cash pickups are also a very cheap method of cash transfer. The costs involved are put on the table and there is no chance that you will be surprised by some hidden charges. If you are sending money, just make sure that you provide the recipient with the correct information. This will ensure that the process of receiving money is a smooth one and that no unnecessary delays are experienced.

Cash pickups are also highly secure. The transaction details are only known to the sender and the recipient and no one else can access the funds.