Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Since this is not a U.S.-based question, not sure if anyone here might know. Nobody I've talked to seems to know. But I'm throwing it out there anyway.
We retired to Ecuador, who uses the U.S. dollar. Yet the banks here refuse to dispense cash except for twenties. Despite the fact that:
A survey by Econestad (2011) estimated that 82% of all retail payments in Ecuador were settled in cash and only 10% were bank transfers.----quote from an article from "Science Direct".
Time and time again we've tried to get small bills from the banks, but they won't dispense them. How on earth can these small businesses get by without small denominations? We have to provide exact amounts to small operations like taxis or vendors. In large stores, we can get small bills in change, but that's a hassle for all one's needs. We use credit cards at large stores, but not small businesses.
People returning from the U.S. are advised to bring as much cash in small bills as they can, since ones and fives, even tens, are in short supply.
I realize Ecuador does not print its own money and has to get it from the U.S. but why does that cause a shortage? Why can't they get all the cash they need?
The bills we do get, are all old and tattered and would have been retired in the U.S. That's why the dollar coin is preferred here.
If I knew a small business owner, I'd ask them, but I don't. Google revealed nothing that I could find.
Breaking large bills has been a struggle for us for years. We tend to have a constant cycle of knowing which stores can make change from larger bills and we occasionally buy small things there to get change. In Thailand it was Circle Ks, those cats didn't bat an eye if I bought a piece of candy for 2 baht with a 500 baht note from the ATM. Same with most major supermarkets, they would change anything. Mom&Pop places tended to throw that 500 back in my face.
Another struggle is ripped bills, they pass 'em to me on the downlow but often people won't accept them back. Now I've got an eagle eye for someone giving me change with a bill that is torn, and usually get a good natured smile and replacement instead.
Quote:
Originally Posted by mojo101
use Bitcoin
Oh great advice man! She should just roll up to la tienda local, throw some fruit/veggies/beer/chips on the counter, and announce she wants to pay in bitcoin. Problem solved.
Since this is not a U.S.-based question, not sure if anyone here might know. Nobody I've talked to seems to know. But I'm throwing it out there anyway.
We retired to Ecuador, who uses the U.S. dollar. Yet the banks here refuse to dispense cash except for twenties. Despite the fact that:
A survey by Econestad (2011) estimated that 82% of all retail payments in Ecuador were settled in cash and only 10% were bank transfers.----quote from an article from "Science Direct".
Time and time again we've tried to get small bills from the banks, but they won't dispense them. How on earth can these small businesses get by without small denominations? We have to provide exact amounts to small operations like taxis or vendors. In large stores, we can get small bills in change, but that's a hassle for all one's needs. We use credit cards at large stores, but not small businesses.
People returning from the U.S. are advised to bring as much cash in small bills as they can, since ones and fives, even tens, are in short supply.
I realize Ecuador does not print its own money and has to get it from the U.S. but why does that cause a shortage? Why can't they get all the cash they need?
The bills we do get, are all old and tattered and would have been retired in the U.S. That's why the dollar coin is preferred here.
If I knew a small business owner, I'd ask them, but I don't. Google revealed nothing that I could find.
What's the economic principle here?
You answered your own question. Ecuador relies on tourism to bring in actual currency and people don't want to carry thousands of dollars in small bills when they travel.
I presume that their treasury could fly out millions in 20's and exchange them for small bills in the US but that's not very efficient. You could get Ecuadorian centavos and use those for small transactions. It's not convenient but it's a solution.
Businesses need small bills in order to make change for customers. They get small bills/change from the bank and collect bigger bills from customers. They end up depositing those big bills at the bank and repeat the cycle. Banks charge business customers a fee to give them change and small bills. That's how it works in the USA where banks have easy access to the Federal Reserve. In Ecuador it makes sense that banks wouldn't want to part with their small bills.
Businesses need small bills in order to make change for customers. They get small bills/change from the bank and collect bigger bills from customers. They end up depositing those big bills at the bank and repeat the cycle. Banks charge business customers a fee to give them change and small bills. That's how it works in the USA where banks have easy access to the Federal Reserve. In Ecuador it makes sense that banks wouldn't want to part with their small bills.
There are always long lines at the banks and we've never figured out why. Must be the small vendors (they are everywhere) there to get small bills. They probably take them all, so there's none left for us customers. I'd even pay a fee, if I had to. It's such a major hassle.
There has to be another method for Ecuador to get cash, other than tourists. It's not that big of a tourist draw.
I appreciate the responses, but am still wondering: HOW does a country like Ecuador get cash from the U.S.?
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
41,937 posts, read 36,951,955 times
Reputation: 40635
Quote:
Originally Posted by Sand&Salt
There are always long lines at the banks and we've never figured out why. Must be the small vendors (they are everywhere) there to get small bills. They probably take them all, so there's none left for us customers. I'd even pay a fee, if I had to. It's such a major hassle.
There has to be another method for Ecuador to get cash, other than tourists. It's not that big of a tourist draw.
I appreciate the responses, but am still wondering: HOW does a country like Ecuador get cash from the U.S.?
Galapagos Islands are quite the tourist draw, and while they limit the # of people going, the price is very high. I would think that brings in quite a few $$.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
