Expat Community > Colombia

Elexpatriado
Joined 2017
Posts: 7519

How strong can the peso get?

8d ago

Despite all the insegurity in remote parts of Colombia , and issues with the health care system, etc., the peso continues to power away.

It has risen 4 to 6 % so far this year in comparison to other currencies.

This , with the real inflation rate being 10% plus is forcing us expats to trim our living expenses a bit here.

From my search on the internet , the reason seems to be the Banco de la República refuses to.lower interest rates as fast as other countries particularily in Latín América.
Since Colombia is a cash economy, with a large underground sector, very few financially competent people and businesses take bank loans ( who could afford it at those high rates?)

The high interest rates are attracting foreign and local investment into the bond market and CDT investments.

I wonder how far this can go before it stabilizes or rebalances in the other direction?

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SJB Global

SJB Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model.
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Expat Community > Colombia

How strong can the peso get?

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