As the dollar continues to rise and the Colombian peso depreciates, how far can we go?

El dólar en Colombia sigue subiendo sin nada que lo frene y comienza la última sesión de la primera semana de julio con fuertes alzas que lo acercan a los 4.450 pesos, luego de superar su segunda barrera histórica ayer jueves, pa que pulsado the scientist.

According to the Colombian Stock Exchange (BVC), this coin opened on the market on Friday, July 8, at a price of 4,413 pesos and 50 cents, 43.3 is above the representative rate set for today by the controller at 4,369 pesos and 70 cents.

Similarly, in its first run, it bounces higher and in less than an hour it is already rising to a maximum of about 4,438 pesos, in the middle of a day it aims to close in strong increases, despite the slight declines at this time.

Meanwhile, BVC reports, this coin represents a minimum price of 4,395 The average is 4,405 pesos and 87 cents, which shows that pressure continues in international markets due to the specter of a recession.

It should be remembered that the average value of the dollar, yesterday, Thursday, was 4,369 pesos per cent and a minimum of 4,320 pesos. Thus, he is earning more than 700 pesos per month, considering that he closed on June 7 with 3,700 pesos, a market affected by the rise in oil prices.

These current results for the dollar come in response to investors’ fears of a possible economic recession, driven by inflation, and the decline in oil prices, whose indicators have even fallen below $100 per barrel of Brent crude, at levels not seen since. April.

It is good to keep in mind that this exponential growth is not only in Colombia, the US currency has been priced in it 1000 Chilean pesos and closes the days at 965 pesos, with a new historical maximum in the midst of a global strengthening of the currency and in the face of a decline in the value of copperThe country’s main export.

In the case of Chile, that country’s president, Gabriel Borek, attributed the rise to external factors, but also to the “uncertainty” created by the eventual change in the constitutional rule, where On September 4, the Magna Carta project prepared by the founding conference for a year will be voted on in a referendum.

Why is this price to the dollar worrying?

Although the rise and fall of the dollar benefits or affects the various sectors that move around this item, Depending on their needs, as happens for example with coffee producers, the constant rise in coffee prices is worrying for many, as it has undesirable effects.

Juan David Palin, director of analysis and strategy at Casa de Bolsa SCB, explained that if the dollar remains high, the pockets of ordinary people will be hit hardest, as the cost of living will rise due to imported products.

“If the dollar stays flat for too long, it may end up shifting growth into inflation, by increasing the prices of imported goods, which may eventually lead Banco de la República to raise interest rates a little more, With the aim of mitigating the depreciation of the exchange rate, this expert said.

Meanwhile, for stock market analyst Andres Moreno, others affected by this movement of the US currency are those with dollar credits, because with such a rally they will end up paying much more than they initially planned.

The dollar in Colombia scares a lot of people because it affects the dynamics of people Who, for example, wants to go abroad, as well as those who live from imports or who are simply accustomed to buying products abroad via the Internet. “They are all going to start paying more for what’s going on,” Moreno said.

Although the effects of a rising dollar are not immediate, in the medium term they will begin to be felt, initially among producers, as raw material costs increase, and later among consumers, adding to the impact on already high inflation.

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