The price of the Colombian dollar: at record levels – sectors – the economy

The dollar reached a new historical mark in the Colombian interbank market. During the last exchange day of this week, the US currency It reached a maximum of 4209.99 pesos, a price never seen beforeThe aforementioned currency traded on average at 4,198.78 pesos, an increase of 47.6 pesos over the representative market price (TRM) that was in effect yesterday (4,151.21 pesos).

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In this way, the current TRM between today and Tuesday will be 4,198.77, which is the highest in history.

Market analysts say that the issue of a possible recession in the United States began to hit raw materials in global markets, which is reflected in the behavior of global currencies, and those of emerging countries are no exception, this juncture.

In summarizing, The forces that have been driving the dollar in the world come from the interest rate increases by the Federal Reserve (Federal Reserve Bank, the central bank of the United States).

There is an increase in risk aversion globally, which affects the performance of risky assets and increases the demand for safe haven assets such as the dollar

This increase has heightened fears of a recession in that country, which in turn will lead to lower prices for raw materials such as oil. This leads to the weakening of the currencies of the producing and exporting countries of these products.

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Moreover, for analysts, increases in federal interest rates are accompanied by equal measures by central banks in other countries to control inflation. Therefore, the perceived recession risk due to a change in monetary policy extends beyond the United States and explains the decline in the prices of metals and other products.

Jerome Powell, President of the United States Federal Reserve.


Oliver Doolery/AFP

Yesterday, according to the reports of the electronic trading system of the Colombian Stock Exchange, the buying and selling of dollars began in Colombia at a price of 4174.98 pesos.about 24 pesos more than the official rate in effect on the last day of the week.

Four minutes before the market closed, the maximum reached 4209.99 pesos, and ended at 1 pm at 4,205.05 pesos.

For Juan David Palin, director of strategy and investment at Casa de Bolsa, “There is an increase in risk aversion globally, which is affecting the performance of risky assets and increasing demand for safe assets such as the dollar.” .

(Read also: Gasoline and diesel prices rise by 150 pesos per gallon as of Saturday)

bottom raw material

In the case of Brazil, its (real) currency is taking a hit due to lower prices for soybeans, a major export product, Chile with copper, and Colombia for oil, says Philip Campos, director of economic research at Grupo Alianza. Which fell 5 percent on Thursday of this week.

“There is a strong sensitivity in the markets of all currencies, in general they lose their value against the dollar. The expert notes that there is a complex global environment, where the political is already included in the dollar price at this point, but the currency trend will continue to dictate oil and the global situation.

In addition, in the Colombian case, Bloomberg sees the election of Gustavo Petro, the country’s first leftist, as president, as this caused the liquidation of local assets and pushed the peso close to its historical minimum. 4230 pesos per dollar.

There is strong sensitivity in the markets of all currencies, as they generally lose value against the dollar. There is a complex global environment

Faced with this situation, it seems that the well-known economist and former co-director of the Central Bank has not even been appointed. Jose Antonio Ocampo, Minister of Finance He was able to reverse the negative perception.

On the other hand, at the beginning of the seventh month of 2022, the price of a barrel of Brent oil fell by 2.76 percent yesterday after the change in the reference contract in the crude oil futures negotiations that lasted from August to September, Which changed its price level and left it above $111.63. The day before it had finished at $114.81 (August contract).

Brent added three consecutive sessions with a downward trend, after the Organization of the Petroleum Exporting Countries and its partners (Opep+) approved their plans to increase joint pumping by 648,000 barrels per day from August.

Despite the fact that OPEC+ is maintaining the roadmap it approved on June 2, some analysts believe it will struggle to achieve these goals.

(Read more in economics: Ocampo: “Colombia should explore more and find more gas”)

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