Dollar price in Colombia today March 21 news today

In the middle of a week with a rise on Monday and Wednesday and a fall on Tuesday, the dollar price starts its day talking with another rise.

At the end of the day, a price of $3,904.95 was recorded for the currency. This represents an increase of $9 compared to Wednesday’s close, which was $3,895.95.

Representative Market Rate (trm) was set by the Superintendent of Finance for this Thursday, March 21, 2024 at $3,886.94.

The maximum price of the US currency on that day was $3,907.95 and the minimum was $3,865.9. While the average was $3,888.1.

These movements in the currency follow the decision of the Board of Directors of the Federal Reserve (FED) not to lower interest rates in the United States, which was announced on the afternoon of March 20.

Also read: What was going to happen happened and the Fed didn’t raise rates: What happens next?

Interest rates and the FED

officials of federal Reserve He maintained his outlook for a three-quarter rate cut this year, but projected fewer cuts through 2025 after a recent surge in inflation.

Officials unanimously decided at their fifth consecutive meeting to leave the benchmark federal funds rate in the range of 5.25% to 5.5%, the highest since 2001.

Officials said they are on track to cut rates this year for the first time since March 2020, but now only three cuts are forecast in 2025, according to the average estimate, down from four forecast in December.

What happens with interest rates in the United States is important because the value of the dollar shows high dependence on it. In short, if the Fed lowers rates, the price of the currency is expected to decline, making credit cheaper and increasing investment opportunities in countries like Colombia.

Since more greenbacks are in circulation in the country, the dollar has lost weight against the Colombian peso.

The declining trend in the dollar in recent months can also be explained by the increase in dispatch Which has been registered. For example, according to a report by the Bank of Bogotá, in 2023, Colombians living abroad sent more than US$10 million to the country, amounting to about 2.8% of Colombia’s GDP. Projections suggest that remittances will increase by US$700,000 in 2024.

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