How do you open a dollar savings account in Colombia?

With the dollar’s price as high as it is today, many are taking the lucky dollar bill they keep in their wallet as a joke: “Now it’s time to spend it” is usually a joke to cut back on the bitter drink due to the rising price of that currency. In fact, this comment is not far from the truth.

Today, many financial entities operating in the country offer the option of opening a dollar savings account through their overseas affiliates. Jaime Jaramillo, co-founder of Finanzas Emocionales, explains that among them are Bancolombia, Davienda, Itao and Banco de Bogotá.

“You go to the bank, You say you want to open a savings account in dollars, and you buy dollars from the bank, in the transfer, telling the bank as soon as the account is opened offshore: “Transfer me these dollars that I just bought.” The expert explains that it is legal, the registration takes place with the Banco de la República and has no legal consequences.”

He adds that the “but” is that banks in general They ask for at least $5,000 just to open the account And you have to keep the minimum amount there, so this option can close the door to most.

In Colombia, for example, it was noted that to open a foreign currency savings account in Panama or Puerto Rico, the minimum amount is $5,000; And Banco de Bogotá, for its part, has service in the Miami and New York branches.

Jaramillo points out that there are also good online options like eToro or Insights, which allow opening an account virtually and the entire process is digital. Yes in deed , The important thing is to make sure that the service provider is regulated and supervised By your country’s financial authority, which is something like Colombia’s Superfinanciera.

And what about cryptocurrencies?

Now, despite its volatility, it is no secret that cryptocurrencies are also attracting those who are looking for an alternative to build their wealth. Although Bitcoin is the most popular, there are also stablecoin They are basically cryptocurrencies backed by real currencies like the Euro or the Dollar.

“It’s kind of a digital dollar investment. An interesting coin worth some investment in is the US dollar coin, which comes from the circle, One regulated entity and the other one is Binance USD, which is very regular, and there are other more risky ones coming, like USDT, or DIE, which consists of Ethereum and USD Coin,” states Carlos Mesa, Director of Fundación Bitcóin Colombia.

It is according to Bbva, that stablecoins They are often backed by other digital currencies and even physical commodities such as gold or real estate.

“There is, too stablecoins Which is not linked to any other currency but is controlled by algorithms to keep the price stable. Bbva explains that the main motivation for creating a stablecoin is to try to give investors shelter in times of volatility.

Jaramillo of Emotional Finance explains that one of the risks there is that the business is not regulated in the country and that high responsibility and accuracy are required so that every cryptocurrency traded is backed by dollars or euros. “Why buy a coin that looks like a dollar and not a better dollar? It is his reflection.

More options

It is worth noting that there are options in the market to invest in dollars without the need for an account abroad. Some of them are investment funds or stock funds managed by brokerage firms, trust companies, and pension funds.

“I get access through these entities, I hand over the pesos, and they in turn invest in dollars. There I take the risk of the dollar, if my profit increases in peso and if it decreases, it decreases‘ identifies Jaramillo.

Another interesting offer is the offer of applications such as Global66, a financial technology for cross-border payments that allows you to send and receive money in more than 60 destinations in the world, in just minutes, with a multi-currency option.

Finally, the experts consulted believe that the current situation of rising prices and the threat of recession only confirms that “there are two good times to invest: yesterday and today”.

Although the dollar fell yesterday, it is still costly and it is time to think about the opportunities that may arise in the midst of this scenario (see “To learn more”).

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