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
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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.
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