International oil prices and the difficulty in approving the entire reform package are two of the factors that have led to the dollar in colombia to fall in price in the last weeks.
With yesterday’s drop of 54 pesos, the representative market rate (trm) for next Monday will be 4,355.80 pesos. This is the lowest level registered in the country since last August 18, when the currency stood at 4,316.47 pesos, days after the president gustavo petro came to power.
You can read: These are the changes of the pension reform: could they affect you?
It must be remembered that when the President took office the currency was at 4,337.28 pesos, in his second week in the Casa de Nariño it dropped to 4,185 pesos (the lowest price during his government) and after that it began to rise.
It even came to surpass the barrier of the 5,000 pesos. In the last months of 2022, at the international level, higher interest rates were given by the Federal Reserve in the United States to contain inflation and fears of a possible recession. And at the local level there was uncertainty about the tax reformwhich was finally produced for about 20 billion pesos.
Be sure to read: Deadline to implement new Dian regulations in businesses
This is the lowest level registered in the country since last August 18, when the currency stood at 4,316.47 pesos, days after President Gustavo Petro came to power.
In total, the US currency fell 105 pesos throughout the week and has fallen by 357 pesos in the last month. Although most of the emerging currencies have had a similar behavior in May and have gained ground against the dollar, the Colombian peso was the best performer, with a revaluation of 5.4 percent.
“The dollar has been falling throughout the region; However, in Colombia it is doing so in a deeper way due to the rise in commodities that benefits producing countries and the difficulty of approving the reforms that would have generated a high fiscal impact,” he stated. Juan David Ballén, Director of Analysis and Strategy at Casa de Bolsa.
Yesterday both the price of Texas intermediate oil (WTI) and Brent ended up after the United States Congress and Senate approved the bill to raise the debt ceiling and thus prevent the country from enter into suspension of payments.
WTI rose 2.64 percent to close at $71.74. Meanwhile, Brent finished on the London futures market at $76.08, 2.45 percent higher than at the end of the previous session. Now the eyes of investors are on this weekend’s meeting between the oil-producing countries and their allies, OPEC+.
WTI rose 2.64 percent to close at $71.74.
Jamie Moreno. WEATHER Archive
In addition to this, there is the issue that the United States Federal Reserve it could keep interest rates stable this month, but would leave the door open for a hike in July.
Similarly, although the Colombian risk premium it remains much higher than the average for Latin America, this has been correcting a bit from its maximum levels in recent months, which according to Germán Cristancho, manager of economic research and strategy at Davivienda Corredores, has favored the performance of the Colombian peso.
“Local uncertainty remains high and translates into broad volatility of the dollar. International factors also helped the moderation of the price of the dollar in Latin America and the world, ”she said.
It also highlights that the economy has given clear signs of deceleration which have become a drop in imports, both by companies and households, which has meant a lower demand for dollars.
