The exchange rate in Colombia has been reacting to political events, with the US dollar being quoted at 3,877.49 Colombian pesos on average in today’s session. This represents a 0.17% change compared to the previous session, where it stood at 3,884.25 pesos. Over the last seven days, the US dollar has seen a 1.98% increase, but still has accumulated a 7.06% decrease compared to a year ago.
The Bank of the Republic of Colombia predicts that by the end of 2024, the exchange rate will reach an average of 4,081 pesos per dollar, a significant improvement from previous peaks. Inflation is also expected to decrease to 5.61%, while economic growth forecasts remain modest at 1.2% in 2024.
The Colombian peso has strengthened in the last year, alongside other currencies in the region like the Brazilian real and the Mexican peso. This appreciation has been driven by global events such as the Russia-Ukraine conflict and local economic decisions. The Colombian economy has seen benefits from the slow discussion on reforms proposed by President Gustavo Petro.
Currently, the peso has reached $4,100 per dollar, showing a 16% progress. Some experts believe it could rebound further to reach $4,500 pesos. The euro has also been affected by the growth of the Colombian peso in recent months, with the euro approaching parity with the dollar.
The Colombian peso, abbreviated as COP, is the legal currency controlled by the Bank of the Republic of Colombia. There are coins in circulation with designs that reflect the country’s biodiversity, including the spectacled bear and the flag macaw. The currency has seen improvements in security measures, such as bimetallic coins, to prevent counterfeiting.