The Colombian peso would reach the highest devaluation in Latin America in the last 12 months. Although this behavior would be due to external factors related to the rise in interest rates in the United States, persistent inflation and the Russia-Ukraine conflict, the proximity of the presidential elections in Colombia would also be putting pressure on this collapse.
In this way, the devaluation of the peso since January reached 2.49% and in the full year, that is, since May 2021, it is 9.84%, higher than that of the Brazilian real, which is 9. 4%.
According to a report by Corficolombiana, the electoral uncertainty in the country will generate volatility in the exchange rate in the coming weeks, as happened in the run-up to the elections in Chile and Peru.
Likewise, Diego Gómez, a specialist in the foreign exchange market at Corficolombiana, told the newspaper Portafolio that the inflation rate in the United States of 8.3% per year shows that a stronger adjustment of the Federal Reserve in terms of rates is coming and the appetite for the dollar hits Latin American currenciesso in the case of Colombia this adds to the uncertainty due to the presidential election that might generate important changes to the economic model.