In recent weeks the dollar has reached historic prices compared to the Colombian peso. Currently, the currency is positioned above 4,500 pesos, cWith an average trading price of $4,557.45, as of July 13.
(Read: Petro will seek to make the tax system more “fair and progressive”).
Faced with widespread concern about these price hikes, the president-elect, Gustav Petro, tried to make a call for citizens not to rush to buy dollars.
“To those who are buying dollars in Colombia, with the greatest respect I have to announce that, when I put them up for sale again, they will be worth less at that time. eye! don’t waste your money“wrote the left-wing leader.
To those who are buying dollars in Colombia today, with the greatest respect I have to announce that when I put them up for sale again, they will be worth less at that time. eye! Don’t waste your money. https://t.co/toPXCbNuJW
– Gustavo Petro (@petrogustavo) July 11, 2022
Now, although his statement is not clear about what it means to ‘put up for sale’ dollars, to Juan Camilo Pardo, economist and member of Corficolombiana, the president is making an announcement. “Don’t buy dollars because possibly later you will have to sell them cheaper. Meaning that the exchange rate will go down in the future,” he explains.
Secondly, Carlos Eduardo Sepulveda dean of the Faculty of Economics at the Universidad del Rosario, assures that at the state level there are two important faculties in this field: portfolio management and monetary policy from the Banco de la República.
“More than a release of dollars, it is about portfolio adjustments in which greater liquidity is provided to the economy“, Explain.
However, for the expert this would not be enough to counteract a situation of devaluationbut it does generate concern because it sends a signal of direct intervention of the economy that reinforces the problem.