Since March 20, 2020, when the quarantines and isolations began due to the start of the pandemic in Colombia, the dollar did not register a rate like this Friday, of $4,109.71, which implies a devaluation so far this year of 3.22% and in the last 12 months of 10.97% and confirms the upward trend of the last four weeks.
(The price of the dollar exceeded the barrier of 4,100 pesos).
At that time, due to the expansion of covid-19, world markets registered high volatility and the devaluations of the different currencies against the dollar were high.
The greater perception of the risk due to the blow that it would imply for the world economy due to the quarantines and the paralysis of a large part of the production, made a good part of the investors take refuge in the currency, which caused its strengthening.
The official rate for this Friday ($4,109.71) represents a growth of $29.39, compared to the previous day.
The exchange day on Thursday opened operations at $4,105 and had as its highest price $4,133 and the lowest reached $4,092.40.
(Why is the dollar sold cheaper in exchange houses?).
The average price of the day for the dollar was $4,109.97 with an increase of $29 compared to the day on Wednesday.
With this, the Colombian peso exhibited a daily depreciation of 0.64% and transactions were made for US$1,491 million.
The persistent increase in inflation in the United States and the unanimous consensus that the Federal Reserve must accelerate the increase in interest rates to control prices, added to the conflict over Russia’s invasion of Ukraine and the effect that this may have on world inflation, are two of the main external factors that explain the rise in the exchange rate.
According to Daniel Velandia, head of economic research at Credicorp Capital, “The Colombian peso is incorporating a premium for political risk due to the fact that it generates uncertainty in the face of the possibility that Gustavo Petro will be the president of Colombia.”
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