8/11/2023 0 Comments Usd to col pesos![]() Worst exchange rate of February 2022: 3881.8722, Best exchange rate of February 2022: 3967.9248, Average exchange rate in February 2022: 3939.1071 Worst exchange rate of January 2022: 3933.1658, Best exchange rate of January 2022: 4090.3013, Average exchange rate in January 2022: 4002.099 US Dollar to Colombian Peso Monthly Exchange Rates Analysts believe that the bank will need to hike interest rates several times this year in a bid to control inflation.Īs mentioned in the technical analysis above, it is expected that the USD/COP pair will continue to fall in the near term.Converting US Dollar (USD) to Colombian Peso (COP) in 2022 with the best, worst and average exchange rates of the year Table of 1 US Dollar to Colombian Peso Exchange Rate: As shown below, it hiked interest rates from about 2% in 2021 to over 12%. ![]() The Colombian Central Bank, like the Federal Reserve, decided to start hiking interest rates. The weaker Colombian Peso also contributed to inflation. This inflation was caused by higher energy prices and the supply chain shortages that happened during the pandemic. Colombia Interest Rate HikesĬolombia observed higher inflation after the Covid-19 pandemic. Therefore, the USD/COP rose because the US dollar is seen as a safe asset and American assets yielded better returns as rates jumped. Some analysts believe that interest rates will soar to 6% for the first time in decades. With the unemployment rate at a 53-year low, and inflation remaining sticky, the Fed has hinted that it will continue hiking rates in the coming months. In its first meeting in 2022, the bank decided to hike rates by 0.25%, bringing the base interest rate between 4.50% and 4.75%. The Fed has maintained its hawkish tone in 2023. In addition, the bank decided to start implementing quantitative tightening (QT), which reduces the size of its balance sheet. Higher rates help to lower inflation by reducing spending in the economy. Therefore, the Fed decided to hike interest rates from about zero to over 4%. Data compiled by the Bureau of Labor Statistics (BLS) showed that consumer inflation jumped to a high of 9.1% in 2022. The most important one is the fact that the Federal Reserve has been tightening aggressively in a bid to lower inflation. There are several reasons why the USD to COP price surged since 2022. Data by TradingView shows that the Colombian Peso has crashed by more than 30% in this period because the US dollar index surged to the highest level in more than 20 years. The USD to COP price has been in an uptrend in the past 12 months. Since 2012, the USD to COP pair has been in a broadly upward trend that saw a rise from a low of ~1,650 to over 5,000. This period coincided with the end of the dot com bubble and the Global Financial Crisis (GFC) of 2008/2009. The only time when the Colombian Peso strengthened against the US dollar was between 2002 and ~2012. The US dollar was introduced in 1792 when the US Mint started operations.Ī lot has happened since the early days of the USD/COP exchange rate, including the end of the gold standard in 1971.Īs shown below, the USD to COP pair has generally been in a strong bullish trend over the years. At that time, Colombia was involved in trading activities with the US. The records show that Colombia initially used the Spanish real until 1820 and moved to Colombia real post-1820 till 1837.Īfter 1837, the Colombian Peso became the primary unit of currency. The history of the USD to COP exchange rate can be traced from the historical ties between the US and Colombia. ![]() Conversely, Colombia is an emerging market with about 62 million people and a GDP of over $361 billion. On the one hand, the US is a diversified economy with a GDP of over $23 trillion and a population of over 330 million. The overall weakness of the Colombian Peso against the USD reflects the disparities between the two economies. South Georgia and the South Sandwich Islands.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |