Dollar in Colombia: is it a good time to buy or sell it?

So far in the second quarter of the year, the American dollar has had a downward behavior compared to the Colombian pesoto the point that it has been behaving below the barrier of 4,200 pesos.

This, for many people, has meant a chance to try to have investments in this currency while you continue with this behavior.

(Dollar in Colombia: when will the price of the currency stop falling?).

However, is it advisable to buy or sell dollars? Can managing dollars in the country be a true investment in the future, knowing that the dollar behaves aggressively?

Daniel Velandia, Chief Economist at Credicorp Capitalassured for Portfolio that the purchase and sale of dollars in the country, like everything in the economy, will depend on the behavior of the currency with respect to the market in which investments are made with it.

(The dollar in Colombia: falls, rises and what is coming for the currency).

“In the short term, for those who need to buy dollars, it is the best moment we have seen in the last year in the country“said the expert.

From the investment side, the dollar can be a very risky bet with much longer termssince the person has to take into account the volatility of the dollar in each market and, therefore, its level of risk.

(Fall in the price of the dollar: effects that it is having on the economy).

“It can be risky to take out the silver at 4,100 pesos and take it out after a year betting that the dollar roseVelandia added.

Nevertheless, the expert did not rule out the fact that the US currency is a reliable alternative for financial diversification.

(So ​​far in June 2023, the dollar has lost more than 260 pesos.)

“When one has some savings, usually one as an advisor recommends having something in dollars. (…) In case you want to live in the United States in the future, then have a greater proportion of your savings in dollars thinking that in the long term, thinking that this money is really being planned in dollars“, said.

Finally, the expert recommended having a part of the savings in dollars as a protection measure, “because what is true is that in the countries of our region there is always a lot of uncertainty and a lot of volatility in the dollar; so having some dollar savings will always be a good alternative“.

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