/biz/ I need thy advice!
I live in New Zealand and my salary is paid in NZD to my NZ bank account.
I'm moving to Ecuador on behalf of the company and hence my salary payment will continue.
Unfortunately, Ecuador's official currency is USD and the NZD/USD has been dropping for a year and a half and now sits at a very SHIT (for me of course, not so bad for NZ) 0.64:1.
Would be fucking great if Ecuador used a local currency, a peso of some sort, but no so this obviously fucks up my income big time.
I need advice on what actions and precautions I should take to try and minimize my income loss.
What are things I should be thinking about which will affect me?
Country with entirely different economic circumstances to USA uses USA currency and you make no reference to that particular countries cost of living etc. and make the assumption that dollar for dollar you're worse off no questions asked
Ausfag living in USA paid in Aud - mate, I'm the definition of fucked, you're rolling in cash in Ecuador
Saw a similar article a few weeks ago.
Ecuador is dropping the US dollar in favour of a digital currency. Would be prudent to do some research.
If you read the thread fellow Ausfag, I'm asking for advice on how to minimise costs regarding to the actual exchange of my salary, as its something that needs to be done regardless of the circumstances or economic situation in Ecuador.
possibly info on things like...
the buy/sell spread?
frequency of exchange?
economic predictions for USA and implications on USD?
Economic predictions for NZ and implications for NZD?
I'm sure people on biz have something to say
thanks kind sir.
According to this article Ecuadorean govt has tried to make it clear that it will simply be for improved transaction convenience and hence will still be tied to the USD.
If they do de-dollarise, what kind of relative strength do you think the new currency will have?
What I'm very poorly explaining is if Ecuador has a low to modest cost of living then it won't impact you too much as you can keep most of your pay in nzd and only transfer chunks to USD as needed.
Open a hsbc foreign currency account to buy the USD then wire the funds to an Ecuador account as needed.
I bought about $35k USD when it was $1.10:$1.00 USD:aud to my favour... Now it's 0.70:1.00 USD:aud and life sucks that little bit more now that the original $35k is spent. I keep 90% of my income in Australia
I see. yeah I know the timing is unfortunate as fuck NZD has practically been averaging .8 from 2011 to end of 2015 but over this last year and half it just went to shit. i think RBNZ devalued to favour exports
Simplest answer OP is to ask your company to pay you in USD to an account you open in Ecuador.
It's not uncommon, especially if you'll be there for a while.
I would rather have USD than NZD right now.
OP, I've lived in Ecuador for about 15 years, the cost of living here is ridiculously low, you are considered middle class with a ~12k income. Could you just get your company to pay you in USD in an account you open in Ecuador?
you think that is the best way? Because asking them to pay in USD means using the current exchange rate.
If the NZD continues to fall (please share your opinion on this) then I was thinking purchasing futures for NZD USD might be the way to go?
I've heard the situation is different at the moment with the oil happenings; that the country's revenue falling.
If you're correct that's great news because im on $100k NZD. Except I'm paying mortgage here in NZ
Hsbc are only bank to allow foreign currency account to non-business owners
You do NOT want to be paid in USD as you don't know which way that will shift in years to come.
If Ecuador is a short term goal just keep your nzd account going so you've got the safety blanket to come back to.
As someone already said, cost of living is low. Convert nzd to USD as needed, keep majority in nzd for when you return.
I've got $6k USD at the moment here in USA and $280k aud back in Australia because why exchange it all to USD if I don't need to?