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therumjournal

Aug 21, 2015, 5:25 AM

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opening a bank account in mexico

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what is needed to open a bank account in mexico? any suggestions on what bank? i just want a basic savings account that earns some interest. does SRE/INM take this into consideration as "proof" that you have "become part of mexican culture" when considering you for citizenship?



YucaLandia


Aug 21, 2015, 6:44 AM

Post #2 of 20 (7533 views)

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Re: [therumjournal] opening a bank account in mexico

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Passport, copy of your visa, and generally a copy of a comprabante (to prove your local address).

Other Notes for Newbies to Mexican Banking:
~ Mexican banks may (or may not) be doing business with the USA or have US affiliates. This means that some Mexican banks have chosen to work with the US Treasury Dept. in enforcing FINCEN / FBAR / FATCA rules, and they require us to fill out a W-9, and they report our Mexican banking info back to the US govt. ... This also means you need to comply with FINCEN / FBAR / FATCA rules.**

~ It can be very important when starting an account to choose a branch of the bank (sucursale) that offers good customer service.

Mexican banks keep many of our key records in paper form (like signature cards), so, many bank services are ONLY available at the branch bank where you start your account. If that branch has poor customer service ... slow ... non-compliant ... incompetent ... then you can find that it can take up to 2 years and many visits to do even a simple thing like adding a person to the account - with multiple return trips to the bank to give them the same paperwork multiple times.

Even if the branch that has good customer service is further away than your nearby bank branch, it can save a lot of time and hassles to sign-up at the sucursale that works.

Happy Trails,
steve
.
.
**IRS FATCA Reaches Out and Touches in Unexpected Ways
and
Filing FBAR Foreign Financial Account Information for US Citizens for FINCEN 114 Article

-
Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on Aug 21, 2015, 6:54 AM)


jreboll

Aug 21, 2015, 6:45 AM

Post #3 of 20 (7531 views)

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Re: [therumjournal] opening a bank account in mexico

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This year the peso has lost a lot of value against the dollar. You have to consider this along with the interest you may get when considering where to put your money.


addtocart

Aug 21, 2015, 6:58 AM

Post #4 of 20 (7522 views)

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Re: [jreboll] opening a bank account in mexico

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This year the peso has lost a lot of value against the dollar. You have to consider this along with the interest you may get when considering where to put your money.

It's not so much the peso is going down, it's the US dollar going up. Go to XE.com and pull a chart of the peso vs. the US dollar and then a chart of the peso vs. the Canadian dollar to see what I mean.


jreboll

Aug 21, 2015, 8:42 AM

Post #5 of 20 (7503 views)

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Re: [addtocart] opening a bank account in mexico

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I said "against the dollar." So what would you rather have, pesos giving you interest or a stronger dollar? That is the question he has to answer.


DigYourself

Aug 21, 2015, 9:48 AM

Post #6 of 20 (7489 views)

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Re: [therumjournal] opening a bank account in mexico

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I believe it is easier to open a simple non-interest bearing checking account then it is a savings or investment account. We opened our Mexican HSBC checking account at an HSBC branch in the States before moving here. We have a Banamex checking account (no interest) and are required to keep 20,000 pesos on deposit or they charge fees, even though we have a Patrimonial account with Banamex as well.

At the moment, I think the safest place to put money and make 2-4% interest (less .6% tax) is Cetes. Check out CetesDirecto.com.

INM has nothing to do with Mexican Citizenship and I don;t believe SRE thinks better of you if you have a Mexican bank account.

We make sure that any financial institutions we deal with have w-9's for both of us (in English and Spanish). Apparently Mexico has recently come out with a similar form. Within the last 30 days we have been asked to complete the exact same form from totally unrelated firms. I think there is a central agency in Mexico (probably part of SAT) which the Mexican firms/banks provide information to (in a standardized fashion) and that agency converses/deals with the US Treasury.

I like having some Pesos in the bank here in Mexico, rather than just US dollars in the US. I don't like having all my eggs in any one basket. In fact I am looking for a third alternative.

Everything s cyclical. The dollar is simply at the top of the cycle at the moment.


La Isla


Aug 21, 2015, 12:22 PM

Post #7 of 20 (7464 views)

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Re: [cuerna1] opening a bank account in mexico

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I believe it is easier to open a simple non-interest bearing checking account then it is a savings or investment account. We opened our Mexican HSBC checking account at an HSBC branch in the States before moving here. We have a Banamex checking account (no interest) and are required to keep 20,000 pesos on deposit or they charge fees,

That's a big requirement to avoid having to pay fees. I have a simple non-interest bearing checking account with Santander and am only required to keep 2000 pesos on deposit to avoid fees.


DigYourself

Aug 21, 2015, 12:39 PM

Post #8 of 20 (7458 views)

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Re: [La Isla] opening a bank account in mexico

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Today it is less than $1200 USD - which in the US will earn you how much monthly interest ? Perhaps a nickel a month.

We had a 'Select' (premium) account with Santander last year. Absolutely the worst banking experience in 61+ years. Sure everything was free but they charge you fees on the 1st day of the month and reimburse you on the last - and we had a lot more than 2000 pesos on deposit with them. They also were the slooowest group to deal with. I was sitting in front of the employee who opened the account with us just a month earlier. He took copies of all our credentials etc. Of course we had all the same credentials with us and yet they doubted our identities. Turns out they entered our info into their system incorrectly and there was no way we could ever answer their questions to their satisfaction - as their information was fundamentally fictional.


YucaLandia


Aug 22, 2015, 7:47 AM

Post #9 of 20 (7381 views)

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Re: [addtocart] opening a bank account in mexico

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This year the peso has lost a lot of value against the dollar. You have to consider this along with the interest you may get when considering where to put your money.

It's not so much the peso is going down, it's the US dollar going up. Go to XE.com and pull a chart of the peso vs. the US dollar and then a chart of the peso vs. the Canadian dollar to see what I mean.


This idea is off-topic from the thread, but it's interesting ... so here goes:

It's very easy to narrowly see 2 isolated data points and imagine that there's some overly simplistic cause-effect relationship. If we instead open our minds to the realities of how our national economies are globally linked, with more than one economic factor per economy, we can realize very different conclusions.

The MXN peso has fallen from $16.4 pesos per Euro to $19.35 since the beginning of 2015 => dropping 18% ...

Is the MXN peso 18% loss versus the Euro due magically/solely to US dollar strength?

===============

The MXN peso has fallen from $22 pesos per British Pound to $26.7 pesos since the beginning of 2015 => dropping 21% ...

Is the 21% MXN peso loss versus the Euro due magically to US dollar strength?

===============

The MXN peso has fallen from $2.2 pesos per D-Krone to $2.6 pesos since the beginning of 2015 => dropping 18% ...

Is the 18% MXN peso loss versus the Krone due magically/solely to US dollar strength?

===============

These comparisons showing Mexican peso losses of roughly 20% against major currencies over the same time frame show that it's a mistake to attribute MXN pesos losses solely to US dollar strength ...

The relative strength of Yen, the Euro, the Pound and the US Dollar versus Mexican Peso weakness says more about the stability and economic strength of some countries versus inherent weaknesses of other countries.

Instead of jumping to narrow simplistic conclusions about US dollar strength, instead shift focus to why the Loonie and Peso are reeling.

For a start, consider the economic weakness of countries depending on commodities prices like oil, copper, and coal ~ and mentally jump to how each nation's export revenues for those commodities have fallen these past 9 months - depleting the national treasuries and weakening these countries economies.

By expanding our views, we see other substantial, more-weighty factors that affect MXN peso weakness, and have better methods and better opportunities to decide what to do with our money based on what's really happening with the MXN peso.

e.g. Will the 3% projected increases in Mexican manufacturing output be able to outweigh the problems with low oil prices ?

Are there facts that predict whether the current low oil prices will stay low, go up, or go down?

A quick review of ... current worldwide oil inventories ... of OPEC production rates ... of Iran's plans to quickly start selling another 1 million bbls per day of fresh crude (when the P5-Iran deal sanctions are lifted), and remembering .... Iran's plans to later add a second 1 million bbls per day of crude (by using the released $150 billion of frozen assets in 2016 to fix their broken oil infrastructure) ... all combine to point to continued high/higher oil daily production rates of 92-94 million bbls versus softening oil consumption (as the Chinese economy stumbles) ... driving supply even higher than consumption ... all combining to point to continued low or lower oil prices ... for years (?)

... with little to do solely with USD strength ...

Then, open the perspectives to the effects of expanded PRI spending vs. the previous PAN administration's more fiscally conservative approaches. ... along with the effects of years of precipitous drops in the Cantarell field output.

Where's it going? and why?

Fun Stuff !

Moderators: Do you want to extract these unrelated posts, and move them to their own thread?

Thanks,
steve
-
Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on Aug 22, 2015, 7:56 AM)


jreboll

Aug 22, 2015, 8:05 AM

Post #10 of 20 (7373 views)

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Re: [YucaLandia] opening a bank account in mexico

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Very informative, Yucalandia. This is similar to stocks that give you a high yield but are are going down in price. OP has to decide if the interest is worth the risk.


DigYourself

Aug 22, 2015, 9:17 AM

Post #11 of 20 (7356 views)

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Re: [YucaLandia] opening a bank account in mexico

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I thought I read that Mexico - at the moment - really isn't hurt by the falling oil prices because they had done an excellent job of hedging their inventory for years to come.

And - the US is the largest oil producer - so the dollar should be even more affected - right.
http://money.cnn.com/...ggest-oil-producers/


(This post was edited by cuerna1 on Aug 22, 2015, 9:24 AM)


addtocart

Aug 22, 2015, 9:25 AM

Post #12 of 20 (7353 views)

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Re: [YucaLandia] opening a bank account in mexico

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Youch! I only looked the peso vs. CAD and clean forgot about the rest of the world. I stand corrected


YucaLandia


Aug 22, 2015, 8:27 PM

Post #13 of 20 (7275 views)

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Re: [cuerna1] opening a bank account in mexico

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I thought I read that Mexico - at the moment - really isn't hurt by the falling oil prices because they had done an excellent job of hedging their inventory for years to come.

And - the US is the largest oil producer - so the dollar should be even more affected - right.
http://money.cnn.com/...ggest-oil-producers/


Cuerna1 has brought up 2 interesting points.

1. Your memory is correct. Mexico has signed a number of hedging deals over the past year. As prices were falling last fall into the $73 - $74 bbl a range (which seemed like a deep fall from the previous $100 a bbl for NYMEX crude), Mexico hedged about 228 million bbls (?) at roughly $76 a bbl - but note that Mexico produces about 2.4 million bbls a day. ...

... Doing that quick math, yes, the 7 big banks that accepted those $76 hedge contracts, quickly took a big beating as oil prices plunged down to below $45 a bbl. , but that same math shows that Mexico's production blew through the 228 million barrels at the $76 level, and now, as Mexican crude spot prices have dropped to $36 a bbl

... So, the Mexican govt. is selling some oil at losses (relative to their total oil production costs that include supporting 40% of the Mex. Gob. revenue)

... but oil experts are saying that Mexico is actually still getting about $49 net (average) a bbl for their crude, due to other hedge contracts that the Mex. Gob. locked in, since that very shrewd $76 a bbl hedge last fall (Nov. 2014).

2. The second issue of US oil prices ... and the question as to why the USD is not suffering ...

a. The US government does not sell oil - like Mexico, the Saudis, the Russians, the Iranians and other sovereign oil producers. This means that falling oil prices does not hurt US govt. revenues, and does not hurt the USD like it hurts the MXN peso, the Russian Ruble, the Saudis, Iranians et al

b. The US govt. economy is incredibly diversified - unlike Canada and other countries that rely on selling commodities like timber, oil, gold, etc. For example, US manufacturing has still been strong - switching places with China as the #1 manufacturer in the world.

Next - similar to Germany - the US manufacturers tend to make High $$ / High profit goods versus the massive amounts of cheap plastic stuff from China (including low-margin cell-phones, tablets, and other cheap consumer electronics with low profits per unit made by hordes of poorly paid Chinese workers).

Then consider that US manufacturing jobs still pay very well, compared to manufacturers in China, Mexico, et al ... which means that those large amounts of high profit US manufactured goods ALSO leverage over into their better-paid US workers who turn around and spend those $$ - further boosting the US economy relative to Canada, Mexico, and China. (and especially Japan, because of Japanese workers very low consumer spending) ...

Still, I've over-simplified things ... even on a macro-economic scale ... to make first-level approximations at what's happening, why, and what's likely to happen next.

A detailed analysis really needs to include the issues of capitalization, the costs and availibility of capital (which has strangled Japan since 1993), the health of each country's banks - and how willing those banks are to lend - and also factor in things like who's financing each country's debt (govt. bonds). Consider that the USA is fairly unique, in that the US economy pretty much finances the US govt's debts - while almost all other countries debts are owed to outsiders. (Consider that the Chinese cut back on their US govt. debt over 2 years ago, and the Chinos have not bought new US debt issuance since then - holding steady at only about $1.3 Trillion of US govt. debt.)

Going back to Capitalism and the USA:
Since the USA has historically been one of the few truly capitalist countries (where capital is available and is loaned by the banks to ordinary people to start, grow, and run businesses), the USA has inherent economic strength that England, Brasil, France, Mexico et al have not had ... because ordinary people (with a good idea and a good plan) in England, Mexico, France, Brasil, et al have not been able to walk into a bank in those countries and get a loan.

So, even with the other evils/realities of capitalism, the USA's populace's access to capital to start, grow, and run businesses, has continued to give the US economy inherent strength that has not existed in class-ist societies like England, Mexico, Brasil, et al ... where you have to be a part of an exclusive class to get access to serious capital.

c. A final reason that the US dollar is not apparently suffering:
Pretty much all other governments on the planet have done a worse job than the US govt, and the US dollar is only "strong" because the Yen sucks, the Euro sucks, the Ruble sucks, oil prices suck, gold prices suck, and there are very few (or no?) safe havens left for rich people and big businesses to park their $$ Trillions ...

Consider a world where the German's still had the old Deutsch Mark ... and were not saddled with rescuing and carrying all the Mediterranean, French, & Eastern European millstones currently dragging the Germans down ... the US Dollar would be taking a beating from the Mark. ... *grin*

Imagine how strong the US Dollar would be if they had not flushed $6 Trillion down the loo in their failed Afghan & Iraq wars?

Imagine how strong the US Dollar would be if they had not given $3 Trillion in tax loopholes to the wealthy (who did NOT create the promised "trickle down" jobs).

Imagine a US Dollar that did not have the $10 Trillion in Bush/Cheney deficits - and imagine the US dollar with only $7 Trillion (not $17 T) of debt.

Imagine how strong the US Dollar would be, without the Bush/Cheney $4 Trillion in US economic losses due to their Fiscal Crisis.

So, the US dollar really is NOT strong ... compared to the USD before the Bush/Cheney/Obama eras.
.
.

blah, blah, blah ... GINGER !
-
Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on Aug 22, 2015, 8:35 PM)


DigYourself

Aug 23, 2015, 5:10 AM

Post #14 of 20 (7237 views)

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Re: [YucaLandia] opening a bank account in mexico

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"a. The US government does not sell oil - like Mexico, the Saudis, the Russians, the Iranians and other sovereign oil producers. This means that falling oil prices does not hurt US govt. revenues, and does not hurt the USD like it hurts the MXN peso, the Russian Ruble, the Saudis, Iranians et al "

I'm not an economist by any means - in fact I'm more a gardner (as in chauncey) - but I found this chart interesting :

http://www.zerohedge.com/.../BNP%20petro%203.jpg

As you can see - for Mexico, oil makes up 1.06% of its GDP and 3.59% of its exports (if I understand what is being presented). Ok so it is not insignificant but look at some of the other countries.

There is another interesting chart at this link - see Oil Reliance :
http://www.cnbc.com/...oil-prices-drop.html

While rummaging around this morning I came across this info.
https://www.cia.gov/...actbook/geos/mx.html

Imagine that - the CIA putting such useful info out there for all to see. Incredible.


YucaLandia


Aug 23, 2015, 8:05 AM

Post #15 of 20 (7201 views)

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Re: [cuerna1] opening a bank account in mexico

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"a. The US government does not sell oil - like Mexico, the Saudis, the Russians, the Iranians and other sovereign oil producers. This means that falling oil prices does not hurt US govt. revenues, and does not hurt the USD like it hurts the MXN peso, the Russian Ruble, the Saudis, Iranians et al "

I'm not an economist by any means - in fact I'm more a gardner (as in chauncey) - but I found this chart interesting :

http://www.zerohedge.com/.../BNP%20petro%203.jpg

As you can see - for Mexico, oil makes up 1.06% of its GDP and 3.59% of its exports (if I understand what is being presented). Ok so it is not insignificant but look at some of the other countries.

There is another interesting chart (reporting oil makes up 7% of Mexico's GDP)* at this link - see Oil Reliance :
http://www.cnbc.com/...oil-prices-drop.html

While rummaging around this morning I came across this info.
https://www.cia.gov/...actbook/geos/mx.html

Imagine that - the CIA putting such useful info out there for all to see. Incredible.



Comparing the quotes for oil revenues as % of GDP points out some interesting dilemmas. The two sources listed above differ by 600% ( 7X ) for the same value of Mexico's oil production (?).

So far, I can't figure out what's causing the big difference between these sources. Can anyone else see why the 7X variation between oil as a % of Mexican GDP?

or - Does it point to the need to pick sources that use consistent methodologies and are current?

Maybe the variations come in because governments and industries are less than forthcoming with their real gross revenues and real expenses ?

=> Consider it through the lens of China's latest big currency devaluations as efforts to try to reconcile their past (distorted - rosy) economic reports vs. reality ?

Fun ... but messy.

steve
-
Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on Aug 23, 2015, 10:42 AM)


cbviajero

Aug 23, 2015, 8:09 AM

Post #16 of 20 (7196 views)

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Re: [cuerna1] opening a bank account in mexico

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"
I'm not an economist by any means - in fact I'm more a gardner (as in chauncey) - but I found this chart interesting :
.

"As long as the roots are not severed all is well.And all will be well in the garden."
"Yes! In the spring there will be growth."


(This post was edited by cbviajero on Aug 23, 2015, 8:24 AM)


DigYourself

Aug 23, 2015, 11:01 AM

Post #17 of 20 (7141 views)

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Re: [YucaLandia] opening a bank account in mexico

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"So far, I can't figure out what's causing the big difference between these sources. Can anyone else see why the 7X variation between oil as a % of Mexican GDP?"

I asked someone and received the following response...
'It's irrelevant. GDP is a fiction.'

I think the the BNP chart is reporting 1.06% of the GDP as 'lost revenue' - not that oil was 1.06% of the GDP.


arbon

Aug 23, 2015, 11:35 AM

Post #18 of 20 (7132 views)

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Re: [cuerna1] opening a bank account in mexico

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The U.S. does sell oil, for the last 3 years. (but did not for 40 years)

An oil tanker arrives at a port in Singapore in 2013. The BW Zambesi, a Singaporean tanker, set sail from Texas headed for South Korea late Wednesday night, carrying some $40 million worth of American crude oil.

See that green tanker? Today it became the first ship to export U.S. oil in nearly 40 years

~~~~~~~~~~~~~~~~~~~~~~~



(This post was edited by arbon on Aug 23, 2015, 11:40 AM)


DavidHF

Aug 24, 2015, 3:02 PM

Post #19 of 20 (7021 views)

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Re: [arbon] opening a bank account in mexico

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The USA does not sell oil, only oil producers sell oil and they're all private or public corporations. The USA doesn't buy oil either.


fordmexico

Aug 29, 2015, 10:01 AM

Post #20 of 20 (6770 views)

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Re: [DavidHF] opening a bank account in mexico

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The USA does not sell oil, only oil producers sell oil and they're all private or public corporations. The USA doesn't buy oil either.


With the exception of the Strategic Petroleum Reserve, the Northeast Home Heating Oil Reserve, and the Northeast Gasoline Supply Reserve.

http://energy.gov/fe/services/petroleum-reserves

https://en.wikipedia.org/wiki/Strategic_Petroleum_Reserve_(United_States)
 
 
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