The price of dollar in Colombia, it closed on Thursday March 9, falling after several days of rising. The day ended with an average of $4,748.56, after a decline of $7.03 from the Market representative rate (TRM)which today stood at $4,755.59.
The US currency had an opening price of $4,770, while it had a record high of $4,774.80 and a low of $4,728.10. According to the platform Set-FX, on March 9, more than $1,069 million was exchanged in 1,929 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) to reduce inflation, the same path as the Bank of the Republic of Colombiaand the World Bank’s warning of economic recession and announcement of an economic slowdown.
The Colombian peso has behaved similarly to other Latin American currencies in recent days, where downward pressures were generated against the dollar and eventually weakened from Tuesday’s close, the peso Colombian being the most volatile.
Analysts explained that the dollar rose by 0.7% on Tuesday March 7, explained by the appearance of the chairman of the Fed, Jerome Powellbefore the Financial Services Committee of the United States House of Representatives to present the semi-annual report on monetary policy, in which he declared that the Fed has yet to make a decision on its March meeting and it will depend on the data obtained so far. In this context, the feeling of risk aversion significantly increased and strengthened the dollar.
According to them, in Colombia, the perception of political and economic risk remains at high levels. On the one hand, the economy is showing signs of an economic slowdown. Moreover, once again the debate on health reform and the expectations of labor reform, which will be presented in the coming weeks, while blockages take place in Cordoba and Antioquia.
What surprised the country’s economy was that some banks announced that they would start lowering the interest rate (usury rate) For the use of credit card.
For example, Bancolombia announced that it would reduce it from 46% to 25% in annual force 1.3 million credit cardsalmost half.
“This is a measure that will be adopted from Friday March 10 and will apply to purchases made with Visa Clásica, Mastercard Clásica, American Express Blue, Mastercard Joven and Mastercard Ideal credit cards, which means that customers who use some of these cards will have an effective annual interest rate of 25%, which is well below the current maximum rate of 46% effective annual rate,” the bank said.
In this sense, Bancolombia clarified that it is a advantage which will apply to customers with a quota of up to 3.9 million pesos, and this represents 50% of all Bancolombia credit cards.
For his part, the president of the BBVA bank, mario pardonoted that the inflation in Colombia, it has reached its maximum, which could suggest that it will fall in the coming months, which would have a direct effect on interest rates.
“We in Colombia are at the peak of inflation and this makes us anticipate that we are passing the peak of interest rates, with which our opinion is that interest rates will go down in the other months and we hope that Lower all products, starting with credit cards, ”assured Pardo Semana.