Colombia Forum

fecherklyn
Joined 2015
Posts: 1372

4 years ago

For all expats in Colombia except the "yanks".

4 years ago

Ok you “yanks”, don’t get ruffled, this just does not interest you even if you generally monopolise this forum.

My 2018 Colombian tax declaration preparations obliged me to look more closely at the monetary bank transfers that I brought into the country this last year. In so doing, I analysed the cost of bringing this money into Colombia and the reason it does not interest you dollar millionaires is because my source funds all originate from Europe, not the USA. So to those of you who convert Euros, Pounds Sterling, Canadian Dollars, etc., this might interest you.

During early August 2018 I instructed my bank in Europe to sell Euro 20,000 and £ 10,000 into US$. These “source” funds realised US$ 35,929 at the banks internal exchange rates. On examination, these “source” funds would have realised US$ 36,780 if they had been converted at the market interbank bid rates of the day. Result, my bank took a 2.31% dealing margin on this deal.

My US$ 35,929 was transferred by my bank in Europe to my bank in Medellin for an US$ 80 transfer cost (In 2 transactions, each with a US$ 40 transfer cost).

On receipt of the US$ 35,929, my bank in Medellin converted the dollars to COP at a US$/COP rate of 3,024 thus realising a 1.30% dealing margin from the Banrep US$/COP interbank rate for that date. The US$ equivalent of this conversion was thus US$ 478 (1.30% of US$ 36,780)

Thus the interbank value of my “source”funds was reduced from US$ 36,780 to the COP equivalent of US$ 35,371 on arrival in my COP bank account.

Overall cost of this bank transfer = 3.83% - Not too bad bearing in mind the transaction has to support the bank margins on two foreign exhange movements ( £, or € to US$, and then US$ to COP) and the transfer costs.

If any of you “yanks” have followed this so far, be thankful you only have to worry about the mighty dollar. Don’t tell Donald though as it might spoil his desperation about everybody trying to take advantage of the USA.

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