Ecuador & Euro


Ecuador is now a country where you can diversify into the euro.

Some Ecuador banks offer accounts in Euro.

Ecuador-multi-currency-atm

Frankly… the euro may not last long as it now stands… and we can expect that those holding euro will not be the winners if there is a shift to two euros… the “Euro Mark” and the “Euro Pigs”.

However the US dollar is in trouble too and the greenback is Ecuador’s currency.  It is really convenient when traveling to Ecuador from the USA not having to convert money, but many who move to Ecuador and live there might want to hold other currencies as well as the buck.

So Ecuador banks that offer euro accounts provide some form of diversification now.

Before introducing the Ecuador banks offering the euro accounts… a word about Ecuador banks overall… why Merri and I do not use them and other ways to get currency diversification.

I do not ever hold many assets in the countries where I reside.  I believe in asset protection by keeping money in numerous banks outside the country where I live. There are no tax advantages to this. One should never hide these funds from any taxman… but the asset protection and investing benefits are huge.

I also do not especially trust Ecuador banks. I  lost a fair amount of money in Ecuador banks when they crashed in 1999.  “Once bitten, twice shy”.  Plus it is hard for anyone without a resident visa (which Merri and I do not have nor desire) to open an Ecuador bank account.   There are better ways to pay your bills when in Ecuador.

One way is  to use ATMs.  Merri and I don’t use an ATM card in the US (we pay for everything with our credit card to get frequent flier miles) but found that ATMs are good way to access cash in Ecuador. We have safes in all the rooms at our hotel Inn land of the Sun (formerly Meson de las Flores). Most hotels  offer free safety deposit boxes so when we arrive, we just put our cash, wallet with credit cards and passports in our safe box. Then we just have a bit of cash like $20 or so in our pockets.

Bring small bills and plenty of coins when you come to Ecuador… never $100 bills nor travelers checks which are almost useless.

Ecuador ATM’s

Merri and I live off of ATMs in Ecuador for our day to day cash needs..

ATM’s are in almost every village in Ecuador and are compatible with international credit cards.

Visa credit cards work at ATMs operated by Bank of Guayaquil, Pichincha, Produbanco and Banco Pacífico. Each ATM shows the logos of which cards can be used on that machine. We use our regular ATM cash card issued by our Florida bank at this Bank of Pichincha branch (shown above) on Cotacachi’s second smaller plaza.

Ecuador-multi-currency-plaza

The plaza is pristine because it is maintained by the bank.

Ecuador-multi-currency-atm-sign

The bank is next to the police station and the second smaller Cathedral.

Ecuador-multi-currency-atm-cathedral

Be sure to see further on what they are doing behind the bank.  There are two Cathedrals in Cotacachi and one bank…a nice ratio.

However there are three Cotacachi ATMs. The other two are on the main street 10th of August. Here is one of them…the newest of the three.

cotacachi-road-work

We are allowed to take $500 a day from the Pichincha ATM and $300 a day from the others.

Jyske ATM Banking in Ecuador

We hold assets for our global portfolio at Jyske Global Asset Management, the branch of Jyske Bank that serves Americans.  Assets there are asset protected plus JGAM has incredible global investing and multi currency experience.

One nifty way to combine global investment management banking and any cash needs in Ecuador is through Copenhagan with Jyske Bank’s VISA debit cards.  This card makes it easy to access cash from your Danish bank account.

Why a Danish bank?  As mentioned earlier I do not trust Ecuador banks. On the other hand Danish banks are among the safest in the world.  In recent years Denmark has been rated by Standard & Poor’s as one of the safest country in the world in which to bank.  Jyske Bank is well established with a history of over 100 years. Jyske is Denmark ’s second largest bank, with 450,000 clients in Denmark and over 30,000 abroad.  Jyske Bank has over 23 billion euros in assets and also happens to be one of the leading currency traders in the world. Many other large banks use Jyske to handle their off hour currency positions. This means that Jyske is huge when it comes to multi currency activity. In fact their turnover reaches $50 billion dollars a day.

Jyske can manage your wealth. For anyone with $100,000 or more to invest Jyske can buy, sell and hold investments from all over the world, stocks, liquid assets, bonds and commodities. They provide full managed or advisory only services.  They even lend in multiple currencies to leverage investments for investors with $200,000 or more.   Almost no bank in North or Latin America can do this.

Once you have Jyske caring for your wealth, they can then help you when you need it…via a global debit card.

US clients who have managed accounts at Jyske Global Asset Management  (JGAM) can have a VISA debit card.

These cards can provide access to cash anywhere in the world…including Ecuador.

Here is Cotacachi’s third ATM.

cotacachi-road-work

Jyske offers three different cards to match different needs.   Each type of card provides considerable flexibility.

You can choose to have the card denominated in a number of currencies based on your choice.  An account is created at Jyske Bank in the same currency. No matter the account currency,  the cards can be denominated in euro, US dollar,  British pound, Swiss franc, Swedish or Danish kroner.

If you have have dollars invested and are drawing dollars in Ecuador, you can eliminate forex costs by denominating your card in US dollars.

For more information US investors contact Thomas Fischer of Jyske Global Asset Management at fischer@jgam.com

Non US investors contact Rene Matys of Jyske Bank at mathys@jbpb.dk

For those with less than $100,000 to set aside or who want to keep their assets nearby… but who would like to diversify their currency holdings in Ecuador can use two of the best Ecuador banks (Banco Bolivariano and Banco Pichincha) offers Euro savings accounts.

See more on Ecuador bank  Banco Bolivariano here.

See more on Ecuador bank  Banco Pichincha here.

Gary

Thomas Fischer from Jyske will speak on how to bank and invest globally at our International Investing and Business seminar next Friday-Sunday February 11-13, 2011.

We have a few spaces for the seminar left.  Join us and meet Thomas there.




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