Dollar Supremacy! U.S. Currency Surpasses 4500 Colombian Pesos

The 4500 breakthrough.

That's right, Laker.  The U.S. Dollar not only

propelled through the 4500 Pesos level today,

it rose to 4525 Pesos .. and then ended the

day even higher, at 4543 Pesos to the Dollar.

So I am requesting that the Home Office of

Expat.com replace the 4000 Pesos thread with

a new, pinned 4500 Pesos thread.

cccmedia

What it means.

The Dollar's dramatic rise versus the Peso since

Presidente Petro's election three months ago

is producing various results.

One of the most important results is the

increase in buying power for dollarized Expats.

If a car in Colombia cost 20,000 US in June

of '22, a dollarized buyer can save at least

several thousand dollars by taking advantage

of the Dollar-favorable exchange rate now.

---

The record closing high for the Dollar vs.

the Peso was 4623 in June (2022).  That's

80 ticks above today's' close of 4543.

Source... xe.com USD-COP charting

Hello everyone,

Please note that this new thread has been created from your posts on the Colombia forum and is now pinned to the top of the forum.

All the best

Bhavna

If a car in Colombia cost 20,000 US in June
of '22, a dollarized buyer can save at least
several thousand dollars by taking advantage
of the Dollar-favorable exchange rate now.


-@cccmedia

Wouldn't many products' price in pesos increase to 'match' the US dollar price, especially imported goods....so the equivalent price in pesos for a car would remain $20kUS?  And hence, inflationary?

Dollarized Expats need to do what it takes to

pay in Dollars.  Check with your North American

bank to see what action needs to be taken

for a large purchase.

Make sure the vendor understands you are

paying in dollars, and not at 4000 to 1.

cccmedia

Dollarized Expats need to do what it takes to
pay in Dollars. Check with your North American
bank to see what action needs to be taken
for a large purchase.
Make sure the vendor understands you are
paying in dollars, and not at 4000 to 1.

cccmedia
-@cccmedia

I don't follow this comment.  If somebody is going to make a large purchase, they are going to transfer the money from U.S. or Ecuador to a Colombian bank account, whether their own or the seller's.  I assume that wire transfer will be converted to pesos based on something close to the spot rate on the day of the transfer.  So how do they pay in dollars, short of bringing them in through the airport or crossing the border from Ecuador?

I was thinking of bank cards.

Another way might be a personal check drawn on a USA bank.

It may take several weeks to clear, as mine did in my purchase

of a new Chevy in 2016.

cccmedia

Dollar's amazing climb.

After surpassing 4500 Colombia Pesos,

the U.S. Dollar continued its persistent

strength against Colombia's currency.

On September 30, the Dollar closed the

week at a value of 4609 Pesos.

Source... xe.com USD-COP charting

Source... xe.com USD-COP charting
-@cccmedia

One of five tips from XE.com related to money conversion:

If you're moving abroad, studying internationally, or plan to stay in a foreign country for a long period of time, consider sending money and banking overseas. Opening up a local bank account can minimize fees and help keep your money secure. It also makes consolidating your currency transactions much easier, helping mitigate the risk of currency fluctuations.

Ticking upward still.

The U.S. Dollar ascended another ten ticks

during the first week of October 2022.

At Friday's close the Dollar stood at 4619

Colombian Pesos.

Source.... xe.com USD-COP charting

First to 4,700.

https://www.elcomercio.com/actualidad/m … ombia.html

Rocket-fueled Dollar sets new record.

The U.S. Dollar closed at a record high today

compared to the Colombian Peso.

After testing all-time limits intraday last

week, the Dollar shot past 4700 today and

finished the day with a new closing record

of 4736 Pesos to the Dollar.

Source... xe.com USD-COP charting

The unstoppable Dollar.

The U.S. Dollar pressed further into

uncharted territory today (October 18).

Up another 26 ticks, the Dollar closed

at a record 4762 Colombian Pesos.

Source... xe.com USD-COP charting

Petro is having a meltdown today so he can implement capital controls.

So the question is, at what point should Colombia expats transfer a boatload of dollars to their Colombia banks, or if one of those foolishly paranoid and without a bank account,  do multiple ATM withdrawals at the max limit?

4,840 good or bad?  I would submit bad for everyone.

How is this bad for dollarized Expat consumers?

cccmedia

@Laker4115

Maybe so. For Ecuador expats, they will probably want to cross the border with a wad of cash instead of flying to Bogota. Or conversely, Colombia expats will probably cross over to Tulcan, in order to use the ATM.

@cccmedia When people get desperate property values drop and criminal activities increase, Venezuela is a good example, I remember the exchange rate of five Bolivares to the dollar and later saw million Bolivares notes being used as toilet paper.  The great thing about Colombia has been the relative stability of its currency for the last sixty years, that appears to be changing rapidly.

Dear Mr. Barley, was that speculation that Sr. Petro

had a meltdown a few days ago .. or possibly based

on a published news story that is eluding me?

If you have any details on a meltdown, kindly

share same.

cccmedia

That was my reaction to reading the tweets proffered by Petro to the public and reported in Revista Semana yesterday.

By the way, I offer up the following quote by an analyst from Fitch ratings provided by Revista Semana on 10/18:

Los tuits del presidente que están hablando de controles de capital, algún tipo de impuestos sobre salidas de capital han dado incertidumbre sobre la política del Gobierno

Fortunately, the Minister of hacienda, Sr. Acampo, sought to calm the public down with his own tweet, stating there will be no currency controls.

Vamos a hacer una política macroeconómica responsable, vamos a cumplir la regla fiscal, no habrá control de cambios, y vamos a diversificar exportaciones

Another landmark day for the Dollar.

The U.S. Dollar broke through the 4900

mark and has reached another

new closing record.

At the close, the Dollar was valued at

4905 Colombian Pesos at www.xe.com

$teeper and $teeper.

A steep and steady increase in

the U.S. Dollar's value versus the Peso

persisted through Friday's close for

the week of October 17-21, 2022.

The Dollar's value was at 4917 Pesos

and still climbing at the official close.

With the Dollar at 4943 Pesos -- the

after-hours exchange rate at xe.com --

a 5000-Peso Dollar could be in sight!

What is the currency play for Colombia expats in this moment, assuming Sr. Ocampo is on the chopping block?

But analysts said they were betting Ocampo (Minister of hacienda) will not stay long and Petro is the true bellwether of what is to come.

“The voice of the president is the one to keep in mind,” said Juan David Ballen, head economist at the Casa de Bolsa brokerage

https://www.reuters.com/article/colombi … SL1N31L2QQ

Not that Colombia will follow Argentina, this recent article discusses how Argentina utilizes currency controls to avoid devaluation:

Unlike most of its Group of 20 peers, Argentina doesn't have a free-floating currency. President Alberto Fernandez's government controls the peso's minimal daily decline through a cobweb of currency controls, price freezes and import restrictions with the goal of protecting dwindling dollar reserves.

https://www.bloomberg.com/news/articles … ange-rates

Argentina's strategy doesn't really work, though, because of something called the "free market" (also called sometimes derogatorily the "black market").

The government's currency controls are gotten around by the "blue dollar" rate, as explained here:

https://www.luliandtom.com/post/the-blu … xplanation

So while the official government rate is now around 1 USD = 150 Argentine pesos,

the "blue dollar" rate is closer to 1 USD = 290 Argentine pesos...

The "blue dollar" rate is the real world view of the worth of the Argentine peso.  The official government controlled rate is just wishful thinking...

@OsageArcher The whole Blue dollar exchange rate is a disaster, imho, and as a US citizen who had hoped to move to Argentina, I've become totally disillusioned to such a move and that's why I'm moving to Colombia. While just getting your hands on USD and changing them on the black market is a royal PITA, the major and insurmountable obstacle is the necessary use of credit cards where you cannot escape the official exchange rate (see "Bend over and take it in the #$*%" smh).

So many things have to be paid with a credit card online and I simply refuse to pay double the price for everything (especially since I don't even get a kiss first, lol ;?)

@cymerax Colombia may be going the way of Argentina.

Hopefully not Venezuela

Seems these people never learn,,

Ever closer to 5000.

The Dollar has gained more ground this week

in what appears to be an inexorable climb

to 5000 Colombian pesos.

Looking at the xe.com USD-COP charting,

we see that the Dollar's close on Tuesday

was 4974 Pesos, up an impressive

600 Pesos since September 23, only about a

month ago.

Dollar downdraft.

The U.S. Dollar got to within seven Pesos of

the vaunted 5000 mark late this week,

before dropping back down some.

The Dollar ended the week of Oct. 24-28

at 4828 Pesos, per xe.com charting.

5,004 Pesos to dollar today.  Probably should revise title to 10,000 pesos to the dollar, I think that is where it will be in less than a year.

The Dollar keeps crushing it.

The U.S. Dollar is defying gravity.

On Thursday (Nov. 3, 2022), the Dollar closed at

5072 Colombian Pesos, per xe.com charting.

Why is the Peso's value tanking?

Reuters reports that uncertainty over Presidente Petro's

tax reform bill has been causing the Peso to plummet.

The bill received Congressional approval today

(Thursday, Nov. 3).

The bill, which Reuters calls the centerpiece of the

Petro administration's economic policies, will raise

four billion dollars US annually for four years,

through increased taxes on oil and coal .. and by

taxing high-income earners (over 2,000 US per month).

Single-use plastics and ultra-processed foods also

are tagged for higher duties.

The money raised will go to Petro's social programs

and to set Colombia's financial house in order.

Source... Reuters

According to this video, "ultra-processed foods" includes many food products.  The taxes are slated to be 10% in 2023, 15% in 2024 and 20% in 2025.

https://www.facebook.com/1159337423/vid … 9754219526

@Archer

"Avena en hojauelas"

I might have to switch to steel cut oats if staying in Colombia some day.

Good news for high-rollers and other tourists.  Argentina is implementing a new exchange rate just for you, which will allow you to use your credit or debit cards, and receive more than the official rate. In fact,

On Friday, one dollar was officially worth 157 Argentine pesos. But in the unofficial market, commonly referred to as the “blue dollar,” it could be worth as much as 285 pesos. And in the system that will now be used by credit card operators it was at 292.

Source: AP

P.S.

Argentina supposedly has the 2nd highest number of casinos in Latina America after Mexico.