The dollar in Colombia will continue to rise and will reach a new historical price this week

The price of the dollar in the country has seen strong changes in recent days, despite the fact that it was expected that with the appointment of Jose Antonio Ocampo as the new Minister of Finance, the financial markets would reduce their concerns about the upcoming Gustavo Petro government.

After this announcement, the coin went through one of the worst weeks in Colombia during 2022 and exceeded its historical maximum values. Some speculators even manage to spread it up to 5,000 pesos.

Petro’s victory will undoubtedly generate a lot of tension in various sectors of the international and national economy, as he will be the first center-left president in the country.

However, Diego Gomez – an exchange market analyst for Corficolombiana – stated in an interview with Bloomberg That the price of the dollar in Colombia is also affected by external conditions, primarily due to a possible global recession.

The expert took advantage of this moment to point out that several countries are currently suffering from this phenomenon. He also pointed out that the depreciation of currencies against the US currency is due in particular to global inflation.

The currency range for this week could be between $4,200 and $4,400. The devaluation of the currency for which not only the Colombian peso is the main hero, but also other currencies of the region “, mentioned in the beginning.

Then Gomez added: “The market begins to think more strongly about the possibility of a forced downturn in the global economy, So we should have some economic fences during this second quarter.”

Natalia Granados, chief financial analyst, also mentioned in this medium that the US currency is likely to exceed 4,300 pesos this week, given that there is a lot of uncertainty in the international markets.

“The dollar is expected to rise during the week, It is very likely that it will touch the next reference level. The dollar is seen as a safe haven asset in times of uncertainty. precise.

Regarding this issue, President Ivan Duque indicated that the motive that leads to the appreciation of the dollar is the loss of certainty towards the uncertainty in the oil and gas sector, especially oil.

The head of state explained that this kind of reality with the US currency brings with it a heavy blow that should not be ignored, causing import value chains to be affected significantly.

“The day of loss of certainty in the oil and gas sector, We will continue to face a disproportionate increase in the dollar in our country, which affects import value chains and contributes to higher inflation.. This sector must be viewed strategically.”

Alejandro Reyes, BBVA Research Economist in Colombia, confirmed in an interview with SEMANA that the price of the dollar in Colombia will stabilize after the first announcements by Gustavo Petro.

According to stock market indices, The US currency hit a new high on Wednesday and managed to climb to 4,397 pesos. The average value was 4,348 pesos, which will serve as a clue to the TRM that will go into effect on July 7.

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