The dollar in Colombia continues downhill. During the third exchange day of this week, the US currency lost another 7 pesos, accumulating a total of about 164 pesos in six days in a series of declines. With this new fall, the official rate for tomorrow Thursday will stand at 4,538.8 pesos, which was the trading average for this Wednesday.

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At the beginning of the third exchange day this week, the US currency lost another 38 pesos, falling to a session low of 4,508 pesos compared to 4,545.94 pesos of the official rate for this Wednesday. However, in the first hour of operations in the interbank market, the average price of said currency was 4,530.98 pesos, according to records of the Electronic Trading System (SET-FX) of the Colombian Stock Exchange (BVC).

On average, the value of the dollar in the Colombian market today has fallen by about 14.6 pesos against today’s TRM, a fall that adds to the five in a series, accumulating a decrease of more than 156 pesos. At this time, the average trading rate for the dollar is 4,534 pesos.

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So far in 2023, the exchange rate in Colombia has lost more than 264 pesos and more than 515 pesos compared to the historical maximum of 5,061.21 pesos registered at the beginning of November of last year.

According to Rodrigo Cifuentes París, Head of Corporate Finance for BDO in Colombia, A good part of the volatility registered by the dollar at the beginning of the year is due to external factors that have influenced the increase in the price of oil, which causes more dollars to enter the country and, consequently, the TRM falls.

The expert also points out that inflation has also influenced this behavior because to control it Bank of the Republic it has had to raise its intervention rate and this indicates that dollars can leave the country seeking refuge in others that generate greater profitability and are safer compared to Colombia. «There is an exit and/or entry, a measure in which the rate and inflation vary,» she maintains.

Other aspects that must be taken into account in this performance of the currency is that the country is tied to the evolution of the interest rate of USAwhich means that -possibly- there is an outflow of dollars, as has been occurring in recent months.

It also influences the outlook for the economy, as well as the conflict between russia and ukrainewhich generates instability in the world economy, especially due to the shortage of energy.

Cifuentes París warns that it is not certain how much longer this behavior can continue. But he indicates that there are economic and political factors that intervene and are unstable and, without a doubt, the reforms or changes that are presented -internally- generate uncertainty.

«It must be taken into account that messages of economic recovery are being given these weeks, a control of inflation in the United States, as well as the reopening of China due to Covid issues; which generates a perspective of economic reactivation and that implies a possible increase in the price of oil -which in Colombia is reflected in the entry of a greater amount of dollars-. In this period, the price of the dollar tends to fall,» he says.

Although the economic panorama is not yet defined in 2023 and this is barely the first month of the year, it is recommended that companies have an ally or business consultant to make sound financial decisions, who can propose different scenarios contemplating their advantages and risks, he pointed out.