A few hours before the inauguration of Republican Donald Trump as president of the United States, the expectation in the region and the rest of the world about the policy changes that the magnate will make in his second era in the White House, as well as the repercussions on the global economy.
Thus, after Trump’s arrival to the Executive on January 19, the price of the dollar in Colombia could range between 4,500 pesos and 4,600 Colombian pesosbut if its policies impact the country in terms of tariffs or remittances, the currency could increase significantly.
In this regard, Francisco Chaves, market analysis manager at Banco de Bogotá, pointed out in Bloomberg Línea that the dollar in Colombia has had a positive behavior since it was created. The results of the presidential elections in the USA were known and it was learned that Trump I would be in the White House again.
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“Faced with the possibilities of tariffs and an economy that can grow much more than expectations, the dollar has strengthened, even despite recent times where it has had a smaller increase after quite high levels were reached against the currencies of advanced and emerging economies“Chaves said in said medium.
In the case of Colombiahe indicated, “Particularly, the effect may be a little smaller because the effects of tariffs are not going to touch this economy, but it may be a more indirect effect, which is why they are measures especially on Mexico.“, held.
Likewise, the manager pointed out that some factors that would cause the exchange rate to increase, at least, up to $4,400they would be, for example, more cuts in interest rates set by the new board of directors of the Bank of the Republic.
VALENTINA DELGADILLO ABELLO
Journalist Portfolio
