INSUBCONTINENT EXCLUSIVE:
The Colombian peso is nearing a significant milestone, approaching the COP$4,400 threshold against the U.S
dollar for the first time in 2024.This trend reflects a mixture of global economic influences and local fiscal issues
dollar plays a crucial role in this situation.As the dollar gains value worldwide, many emerging market currencies, including the Colombian
positions it among emerging markets
Over the past five days alone, it has lost more than 1% of its value
Several domestic factors contribute to this decline.Colombia is currently dealing with a serious fiscal crisis
Tax revenues have fallen significantly short of expectations, leading to projections of an overall fiscal deficit between COP$10 trillion
and COP$12 trillion by the end of the year.Fiscal Crisis and U.S
Elections Drive Peso Depreciation in Colombia
(Photo Internet reproduction)The government faces increasing pressure to meet its financial obligations amid this shortfall
transfers without proper approval from the Ministry of Finance
As a major oil exporter, Colombia benefits from rising oil prices
However, any downturn in these prices could lead to further depreciation of the peso.The health of the oil market remains critical for
elections add another layer of complexity to this scenario
Political events often create uncertainty in financial markets.If Donald Trump or another candidate perceived as unfavorable gains traction,
it could strengthen the dollar further against other currencies.Chaves anticipates that if current trends continue, the exchange rate may
stabilize above COP$4,280 and could approach COP$4,400 by year-end.This projection underscores both domestic economic pressures and broader
international dynamics affecting currency values
In summary, various factors contribute to the potential rise of the dollar against the Colombian peso.Global monetary policies and local
fiscal challenges create a complex environment for both policymakers and investors
