Price of dollar in Colombia today 22 March

Reference photo. / Bloomberg Agency

Photo: Bloomberg Agency

The dollar closed higher this week. This Friday ended the day with an average price of $3,901.35, which represents an increase of $13 compared to the representative market rate, which is $3,888.02 for the day.

During the day, the currency reached a minimum price of $3,883 and a maximum of $3,917.

Read: Fed keeps rates intact again: When will the first cut happen?

Interest rates and the FED

Federal Reserve officials have maintained their outlook for three-quarters of rate cuts this year, but anticipate 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 falling trend of the dollar in recent months can also be explained by the increase recorded in remittances. 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 remittances will increase by US$700,000 in 2024.

Have you already heard the latest news? Economic, We invite you to see them in El Espectador.

(TagstoTranslate)Economic News(T)Dollar price in Colombia today March 22, 2024

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