Question on Money Transfers
Replies: 18 - Last Post: Oct 21, 2012 1:23 PM Last Post By: Stuart333
Oct 12, 2012 5:44 PM
Question on Money TransfersMy sister wired me yesterday $15,000 USD from her bank in the U.S. to my bank in Colombia.
I thought my bank would just exchange the USD into COP at yesterday's rate which 1797 pesos to the dollar ad deposit the money into my bank account.
However, I received a call from my bank asking me to come to sign the "exchange negotiations" paper. I also want to obtain Form 4 that shows that I brought money into Colombia from the U.S. in case I needed to take money out of Colombia in the future.
Does anyone have any experience with this?
My concerns are:
1. My bank would take advantage of me and do a low exchange rate of, for example, 1500 pesos the dollar. Is this legal here?
2. Do I have any options other than accept the exchange rate that my bank offers?
Oct 13, 2012 1:40 AM
Oct 13, 2012 3:42 AM
2Banks are the worst people to transfer money with. Your money will never be changed at the exact rate of the currency for the day (money has to be made somewhere).
Best of using specialist companies like the one mentioned above, there are lots of them and they offer much better rates than the banks.
You have a few things to consider:
1.) Is it too late to stop the transfer?
2.) Is there a penalty for declining the transfer?
3.) What rate are they charging and is it worth just going ahead with it?
All really depends on how desperately you need the money too.....if you need it NOW they may have you over the barrel.
Oct 13, 2012 6:45 AM
3I've done this with Bancolombia. You sign off on some forms and state why you are bringing money into the country (ie, For the purposes of investing in real estate, or whatever you want), that way if you transfer money out of the country you can do that without being taxed or penalized. The money sits in your account in dollars until you want to exchange it into pesos. Each day you can call the number they provide you and find out what the exchange rate is. When I did it the exchange rate was very fair, above what they quote inside the bank. You can negotiate the rate, the more you exchange at any one time the higher the rate you can get. Allianza is easy and efficient, but charges pretty high fees. I only use Bancolombia these days.
Lake View Hostel, Guatape
Oct 13, 2012 9:55 AM
4Yeah, I used Bancolombia as well, but they do give a bad rate. Their form of negotiation is to tell you the rate and ask if you want to accept it. As Greg said, if you don't accept it then it sits there until you do. It's not like they give you a real choice in the rate. With the amount of money I bought over I would have been better off flying to Panama a number of times and bringing the money in cash. If I changed it at a money exchange place I would have ended up with more money after paying for flights than I got from Bancolombia. You'll never get what you see online as thats a midway point between the buy and the sell, but their rate was still really, really bad.
Oct 13, 2012 10:22 AM
Oct 13, 2012 1:40 PM
Oct 13, 2012 2:06 PM
Oct 13, 2012 2:07 PM
Oct 13, 2012 4:37 PM
9Xoom is not the best and WU is simple robbery, try registering account on websites I've mention above, you will see dramatic difference (xe.com would be the best if you are in US or you can always open brokerage account with eg iterative brokers and avoid any fees, but minimum opening balance is $10k - shouldn't be an issue as you've already sent bigger amount)
Oct 13, 2012 6:12 PM
Oct 13, 2012 7:43 PM
Oct 14, 2012 11:31 AM
Oct 14, 2012 11:41 AM
13I don't have 2 rates, I just put $15k USD in calculator and I've been quoted that rate, so in other words as yesterday your would get 2.623.753,65 COP for you $15k - $10 for a wire transfer. Your bank it's slightly better, but you've paid a bit more for a wire. So not a big deal as I've said, it works out similar.
Oct 14, 2012 2:38 PM
(0 star Hotel)
From US$16.69 per night
San AndrésBook now
(3 star Hotel)
From US$342.00 per night
(4 star Hotel)
From US$179.00 per night