:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/4GMEG2ZFOMT5MTCWYZOPUBPBNY.jpg "The price of the dollar in Colombia closes the week at $4,780 amid uncertainty over Gustavo Petro's reforms 1")
The price of dollar in Colombia closed on Friday, March 3, at an average of $4,780, after a notable drop of $74.95 from the Market representative rate (TRM)which for that day was located at $4,855.83.
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On that day, the US currency had an opening price of $4,791.25; a record high of $4,813 and a low of $4,757.01. According to the platform Set-FX, on March 3, more than $1,088 million was exchanged in 1,901 transactions.
Dollar volatility will continue due to domestic and international factors, including economic policy messages from the Government of Gustavo PetroRussia’s invasion of Ukraine, US Federal Reserve raising interest rates (Fed)as well as the increase in interest rate of Bank of the Republic of Colombiaand the warning issued by the world Bank of the economic recession and the announcement of the economic slowdown.
Note that the behavior of the peso was influenced this week by external factors and had a strong correlation with the behavior of Latin American currencies.
In Colombia, the perception of political and economic risk increased in recent weeks due to indications reforms which will be led by the current national government, which has sparked a lively debate. In this context, some ministers raised disagreements against the proposal of health reformwhich led to the presentation of the first restructuring of the government’s ministerial cabinet on Monday, a fact that the market perceived as a message of instability and a radical position against the opposition.
In this regard, the Professor of Public Finance and Budget of the Faculty of Jurisprudence of the Universidad del Rosario Henry Amorcho claimed GlobeLiveMedia colombia that the Colombian exchange rate in 2023 was subject to a strong volatility for something that has been inherited since 2022, since the behavior of the dollar between October and November of that year, in particular in November, reached historic highs which today, of course, generate situations that are now inherited for 2023.
“The results of these historical highs were shown not to correspond to an exchange rate obeying only market fundamentals, but rather to have a strong influence of exchange rate speculation,” he explained.
He indicated that the exchange rate went from $5,200 to $4,600 and today it is exactly $4,780 and yesterday it closed at $4,856.04, which means that he’s been in behavior for the past few weeks that basically hovers between $4,600 and $4,900.
However, he noted that what this year fueled the financial speculation It is the uncertainty generated somehow by the procedures of certain structural reforms of the State, in particular that of health.
“The Minister of Finance (José Antonio Ocampo) and two other ministers noted that the project could be funded, since it has been sent to the Congress of the Republic, since the costs of health reform are not so clear. . And there are already several counter-reforms and some aftershocks of political movements and some involvement of civil society which keeps the atmosphere of uncertainty a bit alive,” Amorocho said.
The professor thinks that the exchange rate will oscillate in the next few days between $4,600 and $4,900 and only between the end of this first semester and at the beginning of the second half, i.e. the third quarter of the year, since the exchange rate will take a path to try to reach a floor and a ceiling of $4,500 and $4,600.
According to him, there will always be factors of oscillating effect (rises and falls in the exchange rate), mainly due to the uncertainties caused by two central questions, the financing of the National Development Plan and the financing of reforms.
In any case, he added, once this question has been clarified, after the discussions in Congress of the Republicin June, the exchange rate should take another path and reach the limits expected to be at the end of the year in about $4,500.