Difference between the dollar Spot, Next Day, TRM and in exchange houses

The volatility in the price of the dollar It has been the trend in recent weeks once the presidential elections in the country are over. Experts agree that the market’s response has to do with different factors, both local and international.

(Read: Market expects inflation for June to approach 9.7%).

However, these constant changes in the price of the dollar have generated concern about its long-term trend. However, the immediate reactions of the foreign currency are related to the market dynamics and the different valuations of the dollar.

These are their differences.

According to Cristián Segura, an analyst at Values ​​AAA, this dollar is the one that is traded on the market on a daily basis and depends on the supply and demand of the day. Generally, it is below the TRM of the day.

In this sense, it is the market where dollars move the most since it is managed by the Colombian Stock Exchange and it is the one used by large foreign exchange buyers and sellers, according to Victor Grosso, an analyst at DataiFX.

“The Spot dollar is used, for example, so that a company that exports flowers and is paid in dollars, can change them into Colombian pesos to pay their payroll and production costs within the country.Gross explains.

This is negotiated on business days between thes 8:00 a.m. and 1:00 p.m. at a price that is constantly changing.

Now, when the Spot dollar does not operate, as on holidays, transactions are agreed that are officially executed one or two days lateras explained by Grosso through his social networks.

“It is a price estimate based on current supply and demand.l”, points out Segura. Accordingly, it is a market that does not have as much volume of transactions as the Spot dollar, but it is a reflection of the perception of some agents in the market about certain situations such as elections.

The Representative Market Rate, on the other hand, is a price that is established in the regulating market and that certifies the Superfinanciera every afternoon on business days.

As Grosso explains, the TRM does not change during the weekends. The price of this depends on the amount of dollars in the market and is intended to remain above certain ranges.

“That is the official price on which all transactions are made internationally and locallySafe says.

This is the dollar that is purchased at retail. In these cases, the price of the currency depends on the owner of the exchange house and it is a value that is not regulated, according to Grosso.

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Generally, foreign exchange agents are set based on the cash available and the Spot dollar movement. Their hours are not regulated either, which is why some of them even work on holidays.

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