They had to pass six months for the price of the dollar in Colombia I would have one again Representative market rate (TRM – official price) above the 4,000 peso barrier: For this Thursday, June 13, the TRM was 4,023.26 pesos, as certified by the Financial Superintendency (SFC).
(See: This is what Colombian households spend for every 100 pesos they have in their pockets).
This value was possible after the operations that were recorded this Wednesday the 12th, in which the US currency was traded at 4,007.30, 4,012, 4,020, 4,039.50, 4,049.99 and 4,051.50 pesos, among others, the latter being the maximum price of the day.
The last time the dollar had a TRM above the 4,000 peso barrier was on December 6, 2023: That day the value was 4,023.21 pesos, very similar to that of this Thursday.
(See: With electronic invoicing, does the paper invoice disappear completely?).
After experiencing two months (April and May) of many falls, with prices that dropped to 3,800, The dollar is closing the first half of 2024 on the rise and without finding a ceiling.
Since last Tuesday, June 4, the ‘greenback’ has not stopped rising and in recent days that trend has become stronger.
Dollar Bloomberg
Juan Camilo Gómez, director of foreign exchange at CrediCorp Capital, explained that “After a week of the election results in Mexico, where the ruling party has maintained the presidency, the Mexican peso (MXN) has experienced a devaluation of 10%. This depreciation has caused ‘off shore’ capital outflows in the region, which is one of the main factors behind the increase in the Colombian peso above 4,000. Furthermore, the shortfall in tax collection and market expectations of a reduction in public spending to avoid a possible breach of the fiscal rule are generating significant pressure on our currency.“.
(See: Would a tax be considered to mitigate the cash crisis the country is going through?).
For its part, Carlos Ariel Alzate Orozco, dean of the Faculty of Economic and Administrative Sciences, University of San Buenaventura, explained that the behavior of the dollar “can signal economic challenges for Colombia: a weaker local currency can be indicative of concerns about political and economic stability, factors such as political uncertainty, a growing fiscal deficit or a slowing economy can negatively influence investor confidence, resulting in greater demand for dollars“.
AND Fabio Castro, CEO for Capital Investment Partners, assured that “The expectations for this first semester are a passive upward trend, that is, we could be above 4,000 pesos, but not very far from this floor.“.
(See: How Colombia’s GDP is doing vs. other countries in the region in the first quarter of 2024).
CAMILO HERNÁNDEZ M.
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