Whether you have friends and family members in El Salvador to whom you want to send some money or you are an importer of goods from there and you need to pay for these goods, you need a fast, reliable and convenient method of money transfer from the country you are in to El Salvador. You can do this either via a bank or via a money transfer operator (MTO).
Bringing Money into the Country
Generally, it is more expensive and less convenient to transfer money to El Salvador via a bank account than it is via an MTO. This is partly because creating a bank account in this country involves a relatively high amount of red tape, as the government strives to combat money laundering.
Issues & Restrictions
In El Salvador, all resident and non-resident transactions involving a sum equal to or above USD 5000 must be reported to the central bank, BCR for statistical purposes, and any cash transaction exceeding approximately USD 57,000 is required to be reported as well. All owners of bank accounts are subject to a tax on wire transfers and cheques, at a rate of 0.25% on any transaction exceeding USD 1000. Besides, though internet banking is available in the country, its use is limited due to the country's low internet penetration.
Substitute Currency ? And if so, why ?
Since 2001, the official currency of El Salvador has been the US dollar. Before then, it was the Colon, which is still legal tender today even though very little of it is in circulation. Thus, there is not really any need for a substitute currency.
Recent Economic Trends
In comparison to other developing countries, the country has experienced relatively low GDP growth rates. These have remained below the low single digits for nearly the past twenty years. Another issue that the Salvadoran economy is grappling with is the inequality income distribution. For instance, the wealthiest 10% of the population earns roughly 15 times the income of the poorest 40%.
Major Salvadoran Banks
Some of the main banks in El Salvador are Banco Agricola, Banco Davivienda SalvadoreÃ±o, Scotiabank El Salvador, Banco de AmÃ©rica Central and Banco Citibank de El Salvador.
Moving Home to El Salvador? Perhaps you are looking to relocate to El Salvador and you need to have money to pay for goods and services prior to and during your move. By completing a money transfer to El Salvador you can have the funds in local currency that you need when you need them. Moving is always stressful and having local currency to hand can help you to make the move a lot less stressful. To make sure you have enough local currency it also pays to check the currency rate El Salvador dollars are being traded at. Do this using an online currency converter and you will be able to keep track of your money better. Up until 2001 the colon was the currency of El Salvador after which it adopted the American dollar, although the colon is still legal tender.
Friends and Family
In some cases you may have friends and family who live in El Salvador who you wish to send currency to. Utilising a service that provides a simple way to complete a currency transfer to El Salvador helps you to get the money to your friends and family when they need it. It is even possible to setup regular transfers to ensure that your recipient always gets their money on time.
Paying for Goods
Importers who purchase goods from El Salvador also need a reliable way to send money to El Salvador on a regular basis. Once again a money transfer can be exactly what an individual or business is looking for. Not only is it a fast way to send currency it is also highly secure and very easy to setup.