Dollar Domination! USD Surpasses 4000 Colombian Pesos page 3 - Colombia forum

Dollar Domination! USD Surpasses 4000 Colombian Pesos

5POSTS

3 years ago

@cccmedia Which goes to show that it's not a Petro problem.聽 It's a global problem.聽 The dollar is just strong right now.聽 We haven't had parity with the Euro in ages.聽 Much of the world is on the brink of recession but the US government is the only one, so far, that has really put on the brakes to reign in inflation, which has the effect of making it stronger compared to many other currencies, Euros and pesos included.

cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#82

Finally, the exchange corrects some.

The week of July 11-15, 2022, ends with a

notable correction in the Dollar-Peso

exchange rate.聽 For the Dollar, the high for

the week was 4624, another record.

On Friday, the Dollar dropped versus

Colombian currency .. closing the week

at 4357 Pesos to the Dollar.

Source... xe.com USD-COP charting

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ChineduOpara Serial expat

433POSTS

3 years ago

#83

@mtbe "Costa Rica, Panama and Ecuador, all on the dollar, are huge draws for wealthy people tourism. "

Fixed that for ya. You're welcome

ChineduOpara Serial expat

433POSTS

3 years ago

#84

I was reading an article not too long ago that said many Venezuelans have reverted to using gold.聽 Just straight up gold.聽 They said people are so used to it now that many are able to give a pretty accurate weight estimate just by looking at a piece.

While I hope it doesn't happen, I don't think that moving to the dollar would spell disaster for Colombia.聽 It works just fine in several other countries and some American tourists get so discombobulated trying to convert that they prefer countries that use the dollar.
- @MotitaSr

Maybe not outright disaster, but it WILL definitely slow down the tourism. Let's be honest, a big chunk of tourists to Colombia are budget-minded "party/fun-seekers" (you can read between the lines), who can't afford ANY of that stuff in the USA or most of Europe.

How much will the tourism slow? I don't know, but it won't be insignificant. I can imagine that - for example - the Walled City/Centro in Cartagena might become barren or turn into a ghost town. Meanwhile, the tourist activities for relatively-wealthy families and fixed-income retirees might likely keep going, regardless of price increases... and by then we're looking at another Costa Rica... 3-night stays at fancy/semi-exclusive beach resorts for a nice wholesome wealthy family of 4, for $5,500 including door-to-door transportation and food. 2-person minimum (so single people can eff right off, I guess, haha)

I promise you, if Colombia switches to the dollar, inflation will hit like a ton of bricks... very few single or budget-minded people are gonna wanna visit Colombia for anything other than unavoidable business, or medical tourism.

If that happens, if much of the dollars stop flowing into Colombia... what are the struggling Colombian locals supposed to do? I predict civil unrest. And Petro's enemies will point and say, "A-HAH!"

cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#85

Dollarizing Colombia?

Colombia's neighbor Ecuador was experiencing

so much inflation in the year 2000 that

the country switched to the U.S. Dollar as

the national currency.

The word 'dollar' is spelled/pronounced there as

诲贸濒补谤, plural: 诲贸濒补谤别蝉.听 Stress the accented

syllable.

Encountering a one-dollar bill in Ecuador is rare.

You might be able to get some at a 'banco';

while you're there, see if you can stock up

on two-dollar bills, which is sometimes

'posible'.

As soon as the Y2K changeover happened,

taxi drivers in Quito expected one dollar

to be the minimum fare.聽 It now seems

to be $1.50, or sometimes at least $3

after about 8 p.m.

Both U.S. and Ecuadorian coins are

in circulation.聽 The denominated

coins are the same size and weight;

for instance, a U.S. dime is the same

size, weight and value as a

ten-centavo coin.

Colombian money is especially

confusing to some foreigners

because it tends to have so many

zeros in the denominations.聽 The

printing on the bills make the

zeros less prominent,

which can add to the confusion.

The peso-based coins can be a

nuisance, for instance on a bus

ride In Medell铆n.聽 Currently, the

fare on a standard bus is

2,550 pesos.聽 Usually, I will hand

the driver a 2,000-peso bill

(value about 48 cents U.S.) and

let him fish out the other little

coins from what I show in my hand.

This always seems to work out.

cccmedia in Medell铆n

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mtbe Contributor

195POSTS

3 years ago

#86

@mtbe "Costa Rica, Panama and Ecuador, all on the dollar, are huge draws for wealthy people tourism. "
Fixed that for ya. You're welcome
- @ChineduOpara

Having just driven through ALL of those countries, there are TONNES of backpackers in ALL of those countries.聽 They are not the wealthy travelers.聽 Switching to the dollar won't affect much in tourism. Just take a look at the tourism rates for those countries since '95...all increasing...minus the dip for Covid.

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ChineduOpara Serial expat

433POSTS

3 years ago

#87

@mtbe I suppose only time will tell!

HutchX2020 Active member

92POSTS

3 years ago

#88

Costa Rica the gringos forced the locals out as it is more expensive to live there than the US聽 now they can keep it

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ChineduOpara Serial expat

433POSTS

3 years ago

#89

@HutchX2020 An article and a couple of videos supporting what you (and I) are saying about Costa Rica's sky-high cost living:

A few months ago I found a documentary that was from made from the LOCALS perspectives. It dived into how all the well-heeled expats have made it nigh-impossible for locals to live their normal lives within their budgets. It was quite tragic to see and hear. I can't seem to find it on YouTube, maybe it's on Facebook. Maybe someone else in this thread knows the documentary and can link to it.

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cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#90

Week-ending rally for the Dollar.

The U.S. Dollar dropped in value

versus the Peso during the week

ending today, July 22, 2022, then

rallied on Friday against the Peso.

The Dollar ended the week at a

rate of 4454 Pesos vs. the Dollar.

Source... xe.com USD-COP charts

cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#91

Peso had an 'up' week.

The Colombian Peso gained strength throughout

the week of July 25-29.

U.S. currency closed the week at 4293 Pesos to

the Dollar, a drop of over 100 ticks for the Dollar

versus the previous week.

Source... xe.com USD-COP charting

cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#92

Inflation seen at 22-year high.

Dollar domination is enabling Expats in

Colombia to weather a high-inflation

period.

Analysts cited by Reuters see annual

inflation in an upward swing that is

on course to a 22-year high of

9.98 percent (annual rate) through

the end of July.聽 That's 0.31 percent

above the annual rate through June.

Supply issues and robust demand

are credited for the unusually

high inflation rate.

13 analysts were surveyed.

Credit:聽 reuters.com

cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#93

Dollar moves up.

The U.S. Dollar moved up and down during

this week just ended (Aug. 1-5, 2022).

The Dollar ended the week on an up note,

standing at 4342 Pesos to one Dollar.

Source... xe.com USD-COP charting

cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#94

Dollar mostly down this week.

The U.S. Dollar has been on a roller-coaster ride,

mostly downward, this week, August 8-12, 2022,

versus the Colombian Peso.

The Dollar closed the week at 4164 Pesos.

Source... xe.com USD-COP charting

cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#95

A strong stretch for the Dollar.

The U.S. Dollar had a strong and solid

week -- August 15-19 -- versus the

Colombian Peso.

The Dollar is now close to ten percent

stronger versus the Peso than when it

surpassed the 4000-Peso mark

some months ago.

The Dollar finished out the week at

the exchange rate of 4387 Pesos.

Source... xe.com USD-COP charting

cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#96

Dollar closes above 4400 on Deuces Day.

It's another positive day for the Dollar, which

closed at just above 4400 Colombian Pesos

today, Monday, 8/22/22.

The precise close, according to xe.com,

was an exchange rate of 4000.64 Pesos

to the Dollar.

cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#97

Dollar channeling near 4400.

The U.S. Dollar channeled in a tight range

just below 4400 for most of the week

of August 22-26, 2022.

The week ended with the Dollar at

4397 Colombian Pesos on Friday.

Source... xe.com USD-COP charting

cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#98

Dollar approaches 4500 !

The U.S. Dollar closed the week ending

September 2, 2022, at an exchange rate

of 4488 Colombian Pesos to the Dollar.

Only during the second week of July 2022

has the Dollar closed higher than it did today,

(It was at 4623 Pesos on July 13 before then

dropping to significantly lower levels.)

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

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ChineduOpara Serial expat

433POSTS

3 years ago

#99

@cccmedia Nice. Also, maybe it's time to update the thread title 馃榿

cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#100

Good idea, Chine.

When we cross the 4500 barrier on a daily close,

I will probably change the thread title or

start a new thread with 4500 in the title.

cccmedia

cccmedia Ecuador/Colombia Expert

10285POSTS

3 years ago

#101

A drop in the Dollar.

The mighty Dollar backed off about 130 ticks

in a week where the Colombian Peso showed a

bit of strength.

The exchange closed for the week of Sept. 5-9

with the USD equivalent to 4351 Pesos.

Source... xe.com USD-COP charting

futuroexpat Contributor

120POSTS

3 years ago

#102

Seems President Petro is a stabilizing influence on the currency exchange. All that pre-election politickin鈥� against Petro was just alarmist.

For example, Most people (and 53 other countries) support Petro鈥檚 condemnation of Nicargua鈥檚 violation of human rights.

So far, Petro is rational, measured, and stable. I think Petro is a stable genius who will not allow Colombia to become Venezuela (another pre-election alarmist claim)

Your dollars are safe with Petro as president.

OsageArcher Colombia Expert

1660POSTS

3 years ago

#103

Seems President Petro is a stabilizing influence on the currency exchange. All that pre-election politickin鈥� against Petro was just alarmist.
For example, Most people (and 53 other countries) support Petro鈥檚 condemnation of Nicargua鈥檚 violation of human rights.
So far, Petro is rational, measured, and stable. I think Petro is a stable genius who will not allow Colombia to become Venezuela (another pre-election alarmist claim)
Your dollars are safe with Petro as president.
-@futuroexpat

Petro has been in office only a little more than one month (since August 7). No one was predicting that things would deteriorate drastically in just a month or two.

But if Petro is a stabilizing influence why did the peso immediately lose compared to the dollar? It does now seem to be "stable" to some degree but at a much weaker level than before...any look at a chart of USD to COP over time shows the peso's loss right in step with Petro's win.

Yes, in Colombia your dollars are safe - your pesos, not so much.

Many Colombians are following the changes he is making and the people he is appointing - and they are not confident that Colombia will get better, but more likely the reverse. Only time will tell. Even Venezuela had a period of prosperity after Ch谩vez was elected - but now they are the poorest country in South America, and only Haiti in the Caribbean can rival them for poverty, squalor and hopelessness. Remember, Rome was not built in a day. Nor did it decline in a day, but over time it certainly and inexorably did.

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