If you are sending money to locations in South America then you are limited in to who you can use, see a list of approved and safe suppliers that can send your money internationally to South America.
There are always downsides and upsides in bringing money into a country. This also applies to South America. If you happen to visit South America, you may have problems with money exchange, for instance converting an amount USD into countries like Argentine and Venezuela. In both countries, you may face the challenges emanating from the high rate of Dollar-local currencies rates. On the other hand, there may be a country in the continent which would not make a holder of the dollar any better or worse.
An example is Ecuador, where the American dollar is the norm of the country's economy. This only goes to show how the dynamics are.
South Americas Brief Economic Trend
Bringing in money to South America may seem a good idea based on recent trends. After a long and painful decline in the regions countries economic fortunes, some of the countries are showing a promising trend.
In this Q1 of 2007, the overall regions economic expansion increased up to 0.8% annually. This may look like an insignificant figure but after seeing as how the regions economy kept souring since 2010, this increase was a good signs.
Substitute Currencies and Why
In some South American countries other than the likes of Brazil, Chile, Colombia, Peru, Paraguay, Guyana, Suriname, and French Guyana, it is better if a visitor uses the local currencies. There are several benefits of using the local currencies. First off, they are flexible enough and enable you to obtain anything you may need as compared to the foreign currency.
It is also an excellent way of contributing to the countries welfare. By changing your country's money for a local currency, you unknowingly boost the rate of the local currency. Overall, bringing in money into South Americas countries, more so the American Dollar, is welcome due to possible higher exchange rates.
Any Restrictions and Issues
Cash money is not only an option when considering bringing into South America. They are options such as Visa Travel Money or Travellers Chequers. Both of them are welcome in almost all the countries on the continent. However, in Peru, the substitutes might not be warmly accepted, as the region has limited banks that could accommodate them.
Lately, with the advancement of information technology, the transfer of foreign money into these countries has become far easier. Western Union, for example, does its services in almost of the regions.
Another option for bringing in money into South America is by card. For daily purposes and for maximum flexibility, the visitors could draw local money with their bank cards. Due to some country's financial security issues, you are advised to always draw money in some safe and official places so the card becomes an ideal option here.
Some of the Main Bank in South America
There are several banks in South America where a visitor could safely draw or save money. In Brazil, there is BTG Pactual. This bank is one of the main banks in the country, along with Banco Santander Brazil, Banco Bradeso, and several other names.
Argentina has Banco de Galicia, Banco Macro and Banco Santander Rio as their biggest banks. Banco de CrÃ©dito del PerÃº is one of the main bank in Peru. Overall, almost all the banks in South America have the same international standard in dealing with foreign money. This similarity is seen as an incentive for international money transfers.
Dollar Struggles to Hold its position throughout the month of August foreign investors were seen to reduce their purchases of dollar denominated securities with the total net Treasury International Capital flows rising by only $38.9B compared to $63.3B the previous. Whilst foreign demand fell nearly 50 percent in August, the details were not nearly as negative as the headline report because demand for Treasuries was very strong, a sign that central banks and private investors expect U.S. yields to remain very low.
Net long term securities actually rose by $128.7B and the gap was made up by a sharp decline in the net dollar denominated liabilities on non-dollar denominated holdings of banks, which is updated quarterly. This line item basically tracks the banks' own liabilities to foreigners in the form of deposits from foreign residents into U.S. banking institutions and borrowings from foreign residents.
The TIC report shows strong demand for dollars from the U.K., China, Japan and hedge funds in the Caribbean. Countries like Brazil and Korea were also net buyers. It is important to note that the dollar actually rallied in the month of August and therefore this data does not tell us how foreign demand has changed since the dollar collapsed in September. We don't expect Japan, Brazil and Korea's appetite for dollars to change - in fact it has probably strengthened because of intervention last month. China on the other hand allowed their currency to hit a record high which means they may have cut back their demand for dollars materially. In the meantime however, they still remain the world's largest holder of Treasuries, boosting their purchases by $21.7B compared to Japan's $15.6B purchases. Since the beginning of the year, the gap between Japanese and Chinese holdings has narrowed significantly although it appeared to have expanded once against in August.
Meanwhile profit taking continues to help the dollar recover despite weaker economic data that validates the need for additional stimulus. Industrial production fell 0.3 percent in September while capacity utilisation dropped from 74.8% to 74.7%. The surprise decline was the first negative print since June 2009 which indicates that a weak dollar has failed to help the manufacturing sector. This also explains why the U.S. government is pressuring China to revalue its currency because even a weak dollar has failed to help reinvigorate the U.S. recovery.
Investors have been buying back dollars since Bernanke spoke on Friday because even though the central bank head confirmed that additional easing will be necessary, Quantitative Easing has been priced and now currency pairs such as the EUR/USD and AUD/USD have been hit by a big wave of profit taking. Of course it also did not help that Trichet denied any plans to end its bond purchase program, which was seen as a step towards tighter monetary policy. The British pound has weakened the most on speculation that the Bank of England could join the Federal Reserve in expanding their asset purchase program by as much as GBP100 billion.
The one currency that has not sold off materially is the Australian dollar because despite the Aussie climbing to parity on Friday, Australian officials maintain a very laissez faire attitude towards the currency. Instead of warning about the negative impact of a strong currency, the Treasurer said last night that it is "dangerous to seek to artificially lower the value of the Australian dollar."
Sending a money transfer payment to South America with a bank is not the cheapest currency exchange method, Using a currency company will offer the best currency rate.