The dollar continues to fall, how long can this trend continue?

Henry Amorocho, professor of public finance at the Rosario Universitysaid there will be downward pressure on the exchange rate between the months of January and February as there is an inflow of funds from major taxpayers and the monetization of corporate cash flows with the aim of adjusting financing for the year.

Meanwhile, José Joaquín Prieto, business head of BTG Pactual, stated that after knowing the inflation data in United States which came in below expectations and shows less dynamism in price increases, the expectation that the Fed will slow its pace of rate hikes has led to a greater appetite in the world for the rest of the currencies.

“If returns are paid less in the United States or if there is an expectation that this increase will be less, all investors will want to diversify their investments and look to other places where they have more returns, such as Latin America,” explained Prieto out.

This point is also shared by the economist Juan David Ballenand says the dollar has weakened at the global level this year due to external factors, related to the drop in inflation in the United States, as pressure on the Fed to raise interest rates above current levels eases .

He added that on a national level, it should see how the nation pays for its revenues.

“Since the interest rates are high in the country and so is the TES of the national debt, that generates an attraction as the investment in these titles will therefore bring a higher return than he pays abroad,” explains the expert.

He added that this has encouraged investors, especially from the offshore area, to come to the country and invest in our assets.

Prieto claimed that another fundamental factor affecting the assessment of the us currency It has to do with paying taxes.

“Companies in Colombia have to pay their taxes according to a calendar that runs from February to June, so companies have had to monetize those who have foreign trade dollars in order to have pesos with which to pay those taxes. amount”, says the manager of BTG Pacual.

Source: El heraldo