Common Reasons for Sending Money to Guatemala
Remittances play a significant role in Guatemala. In terms of GDP, they account for more than 11%. The reasons behind these inflows differ from one remittance to another. Some of the common reasons include.
Household Expenses
Most of the remittance-receiving households in Guatemala allocate remittances to expenses such as utilities, food and rent.
Health Expenses
Whether it is paying for structured health plans or direct medical costs, some of the inflows are directed towards achieving health outcomes.
Education
To keep their siblings and children in school, Guatemalans send tuition money directly to schools or indirectly through their families.
Savings and Investment
Guatemalans through national and private initiatives have investment forums through which they get information about investment opportunities back at home. Some of the investments are in equities and bonds and others in real estate.
Repatriation of Earnings
Some of the Guatemalans abroad are in contractual employment subject to renewal. With such a work arrangement most of them periodically send their earnings back home as a precautionary measure just in case they decide to return home after the expiry of their contracts.
Why Send Money with a Money Transfer Service?
Money transfer services have an advantage over most if not all traditional forms of money transfer. Some of the outstanding advantages of these transfer services include:
Speed of Transfer
Transfers to Guatemala from most sending countries take minutes to a couple of hours to complete. Cash transfers are the fastest especially when paid for by credit or debit card.
Transfer Fees
With as little as $5.50 you can send up to $6000 to Guatemala. This is a fraction of the cost that banks and other traditional money transfer channels charge to send money to Guatemala.
Ease of Setup
Signing up for a money transfer account takes minutes. Some providers may ask for verification of the details you’ve provided, an exercise that can take a couple of hours to complete. All the processes are done online and this makes it convenient for you. Banks may require you to submit hard copy documents which go through a series of processes before you can be allowed to transact.
Exchange Rate Margin
Money transfer services make money from the difference between the mid-market rate and the exchange rate they charge for any currency pair. Most of them charge a margin fee of between 0.5-3.5%. Wise charges zero exchange rate margin that means all transfers are made at the real exchange rate.
Multi-Currency Support
When sending money to Guatemala, you don’t need to convert your sending currency to another intermediate currency before completing the transfer. Online money transfer providers support lots of different currencies making it easier to make a direct transfer to the Guatemala quetzal.
Security
Money transfer service providers are licenced and authorised by government bodies such as Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Financial Crimes Enforcement Network (FinCEN) and the Financial Conduct Authority (FCA). These entities require strict adherence to security provisions and measures.
In addition, providers hold customers funds in separate accounts from operating funds. This guarantees the safety of funds even when the money transfer company goes through financial headwinds.
Things to Consider When Sending Money to Guatemala
When transferring money to Guatemala, there are a few things you need to consider:
No Legal Constraints on Cash Transfers -Guatemala doesn’t impose any restrictions on capital inflows or any other remittances into the country. Therefore, you can send in any amounts without fear of your money being withheld.
Holding a Foreign-Currency Denominated Account -Effective May 2001, Guatemala allowed banking institutions to offer accounts in foreign currency. This means you can hold an account in Guatemala denominated in your host country’s currency making it easier for you to transfer money to your family and business associates in Guatemala.
Extra Regulations for Foreign Exchange Cash Transactions -As from October 2010, the Guatemalan monetary authorities established regulations limiting foreign exchange cash transactions to $3000. Any transactions above this amount are subjected to a secondary layer of regulations which include the depositor declaring that the source of the money is legitimate.
With more transfer corridors to Guatemala opening up, knowing the best ways to send money to your family and friends is imperative. Ensure you compare across the different providers before settling on any money transfer operator.
Looking to Send Money Somewhere Else?
Sending money anywhere else in the world is as easy as sending money to Guatemala. If you’re looking to send money to another country, here is the list of the most popular destinations.