Dollars For Dollars -- What's The Risk?

[nlaruccia]

I've never heard of that before. I thought only traveler's checks could be cashed here.

 

[Joe]

Dollars for Donuts - the risk is that if you wire transfer the money to your buddy - he stops taking your phone calls once the money is in his account in the US.

 

[quitodario]

Dollars for Donuts - the risk is that if you wire transfer the money to your buddy - he stops taking your phone calls once the money is in his account in the US.

I second Joe's point. But that shouldn't necessarily hold you back. If you have doubts, imagine you're playing poker and try it with an amount you'd be willing to lose gambling ... hypothetically, ofcourse.

There are no guarantees in life. Ultimtately, it's a matter of trust.

 

[tqtqtq]

I didn't think it was possible to have a dollar account here.

 

[nikad]

Yes anybody can open a checking or savings account in dollars here. If in doubt of your partner, you can always use an escrow service and everybody is happy.

 

[Splitty]

Safest way is tell them to do a small amount first and you want a copy of their DNI.
Once you build up trust it works well.
They maybe able to give you pesos at a better rate than what you can sell dollars for here.

 

[JamesKTusa]

I've done it a few times, with different parties. Never had any problems but yes there must be some level of trust. Good advice to exchange copies of DNI/passport, and to do a small test amount first. Of course one must always check the locally-exchanged Benjamin Franklins on the spot, this is just common sense. Always keep it below US$10K to avoid the obligatory U.S. IRS/TreasuryDept. notification.

Technically, easiest way for me, (far easier than a wire or ACH transfer), is if you both can open a Schwab Investor's Checking account. Then all it takes is a Skype or magicjack phone call and the stateside transfer is done instantaneously and without fees, simultaneously with the cash handover here in BsAs. Optionally you can conference-in both parties on the phone with Schwab. Also for me, for small amounts <US$10K, this method is easier than Contado Con Liqui, and the recent blue rates yield results comparable to recent CCL rates after commissions.

- Jim

 

[PalermoDano]

I've done it a few times, with different parties. Never had any problems but yes there must be some level of trust. Good advice to exchange copies of DNI/passport, and to do a small test amount first. Of course one must always check the locally-exchanged Benjamin Franklins on the spot, this is just common sense. Always keep it below US$10K to avoid the obligatory U.S. IRS/TreasuryDept. notification.

Technically, easiest way for me, (far easier than a wire or ACH transfer), is if you both can open a Schwab Investor's Checking account. Then all it takes is a Skype or magicjack phone call and the stateside transfer is done instantaneously and without fees, simultaneously with the cash handover here in BsAs. Optionally you can conference-in both parties on the phone with Schwab. Also for me, for small amounts <US$10K, this method is easier than Contado Con Liqui, and the recent blue rates yield results comparable to recent CCL rates after commissions.

- Jim

Trust is the key issue here. Another way I have exchanged dollars for dollars is using mobile banking apps. Most US banks and many credit unions have apps for iOS or android that allow you to scan and deposit checks drawn from US banks. I have three different bank accounts each with different limits. The most restrictive is Wells Fargo @ $1000/day. The highest is for a business account which allows for $25K/day.

My personal philosophy in regards to keeping transactions below US$10K to avoid the obligatory U.S. IRS/TreasuryDept. notification is a mistake if you are going to make multiple deposits. One audit or a repot by your bank of suspected avoidance of filing will come back to haunt you.

The requirement to file form 8800 is quite clear.

You are required to fill out form 8800 if any transaction is over $10,000 and Received as: One lump sum of over $10,000,Two or more related payments that total in excess of $10,000, or Payments received as part of a single transaction (or two or more related transactions) that cause the total cash received within a 12-month period to total more than $10,000.

 

[ajoknoblauch]

We closed our US dollar account, which was partly my wife's inheritance, because we don't trust that Cristina and Moreno will not confiscate the greenbacks.