The dollar recorded an average price of $3,991.02 on Tuesday, breaking the $4,000 mark and reaching its minimum value for the past year.
The currency’s gain was $78 compared to the Representative Market Rate (TRM) in effect this Tuesday, which stood at $4,069.39.
The closing price was $4,001, while the minimum reached was $3,971.10 and the maximum was $4,012.
Daniel Gómez, a professor at the International School of Economics and Administrative Sciences of the University of La Sabana, said that the weakening of the dollar is being registered in several emerging economies due to the increased demand for assets in these economies.
“The demand for assets from emerging countries like Colombia may be due to the banking crisis in the United States. In addition, the perception of lower risk due to the moderation of reforms by the Colombian government contributes to the fall,” the expert said.
He added that it appears that the price of the dollar could fall further (perhaps as low as $3,700). While he explained that the reason for the drop is not clear, it could be due to the stabilization of market expectations following the initial uncertainty caused by the new government.
For the connoisseur, it could be expected that with the fall of the dollar in Colombia, the price of imported products in the country will fall.
“In terms of food, the fall in the price of imported corn could lower the price of meat and chicken. In terms of technology, devices such as tablets and smartphones can be more affordable,” he explains.
He claimed that the fall of the dollar benefits the importing sectors (finished products, inputs and raw materials) and those who are in debt in dollars. However, it hurts the export sectors.
Source: El heraldo
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