After a Tuesday in which he lost almost 100 pesos, the price of the dollar in Colombia rose and overcame the barrier of 3,900 pesos.
(See: What is the attraction that Colombia has for investors and how to take advantage of it).
This Wednesday, May 8, the currency opened at 3,905 pesos and closed at 3,899.84 pesos. Other values that were recorded were 3,900.05, 3,903, 3,905.38, 3,907, 3,908 and 3,910 pesos.
While the maximum and minimum prices at which it was traded on this day were: 3,912.40 pesos and 3,892 pesos, respectively.
At the end of the day, the average trading value of the dollar was 3,902.55 pesos, 17,71 pesos above the Representative Market Rate (TRM) of the day, which was 3,884.84 pesos.
(See: Analysis: there is no money in the country and public finances are clearly deteriorating).
Although this Wednesday is on the rise, The general trend of the North American currency in May has been bearish, moving away from 4,000 pesos, something that was accentuated during April and that has been experienced throughout 2024.
About, Juan Camilo Gómez, director of foreign exchange at CreditCorp Capital, He explained that, during the first half of the year, the currency has been impacted by market challenges.
(See: Problems for Dian: slowdown is already felt in the collection of various taxes).
“The challenges for the dollar are more posed by international market forces and commodity variables, but in the second half we have important challenges at the local level that could cause some setbacks in the dollar again. What can they be? The Government’s social reforms and the economic growth report, among others. The latter is important because we come from a couple of quarters with a low growing economy and income via taxes has fallen mostly due to inflation.“, he valued.
Looking to the future, The expert predicted a TRM of the dollar at 3,954 pesos.
Dollar iStock
From the Bank of the Republic, for its part, it is considered that Aggressive reductions in the Issuer’s monetary policy rate could generate abrupt increases in the exchange rate, with undesirable implications on the trajectory of inflation and on the burden of public debt.
That conclusion was reached by the group of five Banrep co-directors who voted for reduce rates by 50 basis points, leaving them at 11.75%.
(See: Economic plan: experts say that more public spending does not guarantee reactivation).
“A larger reduction in the policy rate than expected by the market could cause a certain reversal in the process of re-anchoring expectations or deepen some of the recent deteriorations in financial markets.“, they argued.
BRIEFCASE
