The dollar in Colombia began its first day this week with reservations, in which it lost nearly 30 pesos, while the market remains attentive to what will happen to the country in tax matters, following the various announcements by the government of Gustavo Petro with the reform that is being prepared for this year.
According to the Colombian Stock Exchangethis currency began the day with an opening value of 4,121 pesos, eight pesos and 98 cents less than the Representative Market Rate set for today by the Financial Superintendence at 4,129 pesos and 87 cents, following a last day of great growth during the last week.
Contrary to its beginning last Friday, June 24, in its first operations this coin marked a strong downward trend, falling to a minimum of 4,073 pesos, while the maximum range remains the same as during the opening, above 4,121. Likewise, the average value is located at 4,086 and the last one marks 4,080 pesos.
In this way, The dollar has lost 56 pesos and 87 cents so far, if the TRM is compared with the minimum price and more than 67 if the last price reached at the close of markets last week (4,140.50 pesos) is taken as a reference, which was undoubtedly very positive for this currency in the country.
This value recorded at the close of the day, on that June 24, leaves the dollar with a gain of 235 pesos and 50 cents, compared to the last price reported last Friday, June 17, and places it in ranges that were not seen since 2020.
It should be remembered that the dollar closed last week with maximum prices, which had not been seen since March 2020, in the midst of an upward trend that marked since the previous Tuesday, following the second round presidential elections, mainly affected by the volatility of oil prices and the uncertainty in international markets due to the slowdown in the economy in the United States.
Andrés Moreno, financial and stock market analyst, assured that although the current market situation is influencing what happens with the dollar in the Colombian market, The negative impacts that come from abroad must be taken into account, with weakened oil and an economy in the United States on the verge of recession.
“The dollar has been rising strongly, May and June, especially from 3,900 the week beforealmost 240 pesos, for various issues, some international such as the drop in oil, the possibility of a recession in the United States and, obviously, for local factors following the election of a president that the markets do not like very much or have enough fear, for obvious reasons,” Moreno explained.
For this week, the expectations of the national market focus on what may happen with the meeting of the Board of the Banco de la República, which will once more review whether or not to increase interest rates in the country, as a measure to face the growth of inflation, which shows no signs of stopping in the short or medium term.
What will happen to the dollar following Petro’s triumph? This is what Luis Carlos Sarmiento thinks
In an interview with María Isabel Rueda, Luis Carlos Sarmiento Ángulo talked regarding these times of uncertainty once morest that currency. The banker assured that in the price of the dollar, “at this moment, the international influence is very clear.”
Sarmiento explained that the value of that currency has grown once morest the peso, because what “is happening in the United States is not a common thing.” He added that “the inflation rate is eight and a half percent, the highest in the last forty years in the United States. That is a circumstance capable of shaking the ground for anyone in other countries.”
“It is not impossible because the authorities cannot allow inflation to continue to skyrocket and they are going to have to continue raising the interest rate”, he said, and compared that measure to the brake of a car.
However, in his opinion that rate is already very high. “The fear comes from the fact that it is at the limit and that if they raise it more, it might produce the undesirable effect of paralyzing the economy, and that would be a recession.”
Sarmiento explained that this is the reason why the market is so agitated. He added that the situation not only affects the exchange rate, but also the prices of the shares, which are at a long time low.