The dollar in Colombia fell below 3,572 pesos on April 21, marking its lowest level since 2021. The U.S. currency thus deepens a downward trend that has been consolidating in recent months, amid a more favorable international environment for emerging-market currencies and signs of stability in the local market.
Although domestic factors, such as high interest rates, are also at play, the drop is surprising for its speed. Less than a year ago, the dollar was hovering around 4,200 pesos and was one of the country’s main economic concerns.
Today, the scenario is different: the Colombian peso is strengthening, investment flows are returning, and the foreign exchange market reflects a shift that affects both importers and exporters.
Dollar depreciation in Colombia hits levels not seen since 2021
The dollar’s recent behavior has been marked by steady downward pressure. In the latest session, the currency opened near 3,600 pesos and lost ground throughout the day, breaking below the 3,572 threshold. This decline adds to several consecutive sessions of losses, forming one of the most pronounced downward cycles in recent years.
Behind this movement is a shift in risk perception regarding Colombia. Investors have shown a greater appetite for assets in emerging markets, partly due to expectations of interest rate cuts in the United States, which weakens the dollar globally and favors currencies such as the Colombian peso.
The weakening of the dollar is not unique to Colombia. Globally, the U.S. currency has lost strength against several currencies, in a context in which the Federal Reserve could begin a rate-cutting cycle. This scenario reduces the attractiveness of dollar-denominated assets and encourages capital inflows into economies with higher returns.
In Colombia’s case, this effect is amplified by the behavior of oil prices, one of the country’s main export products. Stable or rising crude prices improve external revenues and strengthen the exchange balance, which translates into a greater supply of dollars in the local market.
A new equilibrium or a passing trend?
The dollar’s decline has direct effects on the day-to-day economy. For importers, it means lower costs when purchasing goods abroad, which can translate into lower prices for consumers. Technology products, vehicles, and some imported foods could benefit from this new exchange rate level.
However, not everyone wins. Exporters receive fewer pesos for each dollar sold, which can affect their profitability, especially in sectors outside oil. There is also an impact on remittances, which lose value in local currency when the dollar weakens.
The big question is whether this dollar level will hold over time or whether it is a temporary adjustment. Analysts agree that, although the Colombian peso has shown strength, the foreign exchange market remains highly sensitive to external factors, such as monetary policy decisions in the United States or the evolution of commodity prices.
For now, the dollar below 3,572 pesos marks an unprecedented depreciation in five years that redefines market expectations. Colombia is entering a new exchange rate phase, in which stability and confidence once again play a central role, but where global volatility remains an impossible factor to ignore.