:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/4GMEG2ZFOMT5MTCWYZOPUBPBNY.jpg "The price of the dollar closed at $4,919.42: it rose by more than $100 in one week 1")
After a week of uptrend, the dollar price closed on Friday, February 17 on a slight decline, but remains above 4,900 pesos. At the end of the day, the currency was quoted on February 10 at 4,902 pesos. On average, it traded at 4,919.42 pesos, meaning it was down 47 pesos from the Market representative rate (TRM)which stood at 4,966.33 pesos.
A Banco de la República survey estimates that inflation in 2023 will be almost 9%
Expectations in the benchmark rates, once again, have been changed, although the experts consulted assure that the increases would decrease, in February the forecasts have again been rectified
The currency had an opening price of 4,950 pesos, the low during the day was 4,883 pesos. The maximum value at which the dollar was traded was 4,963 pesos. According to the Set-FX platform, $1,200 million was traded that day in 2,144 trades.
Despite the fact that the dollar fell compared to the previous day, the North American currency rose by 100.78 pesos, in just one week, since on Monday, February 13, the dollar traded, on average, at 4,818 .61 pesos and closed on February 17 at 4,919.42 pesos.
The dollar in Colombia closed at $4,783.21 after seeing inflation data from the United States
The consumer price index (CPI) in the North American country fell for the seventh consecutive month and stood at 6.4%
According BloombergSo far in February, the Colombian peso is the third currency in the world that has lost the most value against the dollar (-5.14%). Its fall is exceeded only by the Lebanese pound (which lost 89.91%) and the Russian ruble (-6.09%). In Latin America, the Colombian currency is the most devalued, followed by the Argentine peso (-2.99%) and the Brazilian real (-2.76%).
According to figures presented by the Bank of the Republic, it is estimated that the Colombian peso still has a positive appreciation against the dollar of 1.41%. This taking into account that in the first days of 2023 the US currency broke through the barrier of 5,000 pesos.
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Below you can see how the price of the dollar has varied so far in 2023:
On February 15, the Bank of the Republic published the latest monthly survey of economic analysts’ expectations. Although experts continue to believe that the price increases will be halted, they feared that they might correct their expectations, suggesting that at least by the end of the first half, the price increases would not be reduced.
The forecast would have changed due to the behavior of inflation, among other factors that occurred in January. The fluctuation of dollaramong other figures would be responsible for the evolution of concepts.
With regard to the dollar, in the Bank of the Republic considers that the dollar would maintain its value in the Colombian market above 4,700 pesos. Although it may go up and down at different times, the most optimistic analysts believe that the dollar could reach a minimum price of 4,350 pesos and the most pessimistic peg it very close to 5,000 pesos.
It is also expected that by April, the issuer will begin to lower its key rate, seeking to end 2023 at 11%, so central bank liquidity would be 1.5% lower than at the end of 2022.
“We were explicit that we didn’t want to set any dates or caps on the interest rate. We do not want to define it because we consider that at each moment of decision we must evaluate all the circumstances and all the information available. What is clear is that we are getting closer to that ceiling, whatever it is,” added Villar in dialogue with Briefcase.
The evaluation which will have the Bank of the Republic against this analysis, which is why a further rise in interest rates can be considered. Nevertheless, the issuer ensures that the effects of the measures taken are already being felt; these were exalted by the International Monetary Fundby ensuring that the diagnosis that the issuer made with the economy of the country was very appropriate:
“This seems very appropriate to us given the diagnosis of the economy since interest rates have increased, it is expected that this will affect the inflation rate, causing it to decrease (…) External imbalances should also be reduced amid tighter policies, and credit growth is expected to slow further,” the IMF added.