If you need to make dollar transactions between this weekend and Monday you will feel a stronger blow to your finances. The reason is that the Representative Market Rate (TRM) that will be in force for the dollar until Monday is 3,584.58 pesos.
This, although it rose 62.17 pesos between Friday, March 6 and the current one until Monday 9, is the highest since 1991, according to the statistics of the Financial Superintendence. The value was given in a context in which the coronavirus expanded and the World Bank made announcements about the possible impact that this disease could have on economic growth, which is not quantifiable for now, but it is expected to happen.
Health should not be your only concern, keep in mind that if you bring products through Amazon or make purchases related to travel in dollars using your credit card, the cost will be higher as they are directly related to the TRM (in some cases with the day of the purchase and in others, with the payment of the invoice).
If you are traveling abroad it is preferable that you buy dollars in exchange houses because they are usually cheaper at these points.
On the other hand, the rise so marked that this currency has seen makes the arrival of money from family or friends from abroad to the country (remittances) is more fruitful by these dates, because it will receive more pesos for each dollar.
During this week, the TRM in Colombia moved between high values: 3,455.56 pesos and 3,584.58 pesos.
Those who trade dollars in the Colombian Stock Exchange witnessed that the currency was traded, even, at 3,599 pesos in the morning. On average there reached 3,584.44 pesos in 2,085 transactions worth 1,348 million pesos. The last price that was recorded in this market was 3,587.25 pesos.
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Colombia’s dependence on raw materials would have further boosted the price of the dollar. Felipe Campos, research director of Alianza Valores, said that the behavior of the currency against other strong currencies, such as the euro, is weak compared to that seen in emerging markets, a group in which the country is.
In the “last year, Colombia, Brazil and Chile are leaders in the world in devaluation of their currencies for the dependence of raw materials,” added Campos, who also said that in a “recessive scenario” are the ones that would be hit the most.
The nervousness about the virus as well as Russia’s opposition to voluntary production cuts planned by the Organization of Petroleum Exporting Countries (Opep) also affected the price of hydrocarbon, which in turn has impacted on the value of the dollar against the peso .
As indicated Ómar Suárez, equity market strategy manager of Casa de Bolsa, it is expected that there will be a decrease in the demand for crude oil and the fall in the price of this resource will also generate upward pressure on the TRM.
With the first case of coronavirus in Colombia, economic activity could be reduced, but, for now, the Bank of the Republic is not expected to take strong measures on the interest rate in order to appease the currency hikes generated by investor distrust, according to Julián Cárdenas, Vice President of Investment Protection analyst.
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