Dollar: is it a good time to buy and invest with this currency?

2023 has just begun, but already in 2 months there is an economic trend that has been the protagonist in Colombia: the volatility of the dollar.

And it is that the currency has had weeks of rises for more than 100 pesos and others in which the trend has also been falls for that price: they have touched the 5,000 pesos, for the high, and it has been negotiated in the order of the 4,500 pesos, for the low.

(See: How to be smart about finances this year.)

In the midst of this panorama, there is a recurring question that Colombians ask themselves: will it be a good time to buy dollars and invest with the currency?

Alejandro Correa, Academic Director of Investopi, The finance academy for non-financiers affirms that the outlook could be favorable for this type of investment and predicted that the Colombian peso could have a devaluation closer to the average of the last 10 years, “which was approximately 15%.”

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“In other words, having a conversation in dollars and making an investment in this currency would be an excellent decision for the pocket, contrary to allocating resources to products such as CDT, among others, from traditional banking.“, held.

So things, What could you invest in with dollars? From Investopi they give ‘tips’.

According to Investopi, these would be 5 interesting scenarios to invest with dollars. Of course, it clarifies that this type of actions, which are framed in variable income, must be analyzed in the medium and long term.

-Wall Street. “It allows a lot of diversification and different levels of risk. This stock exchange makes it possible to invest in all industries and on all continents, in addition to being the most regulated and monitored stock market in the world.Correa commented.

– Cryptocurrencies. “It is expected that in 2023 they will present a good recovery. Although they are assets with which you must have basic knowledge of security to invest and must necessarily be considered in the long term, the constant and increasingly frequent regulations confirm that this type of currency is a reality and that it is becoming more relevant every day.”, indicated the expert.

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– Tourism. “Applications like Booking.com and Airbnb allow you to participate in the real estate sector in a more profitable and current way. It may be a much higher investment, but it is an option to consider if the person definitely wants to go for a more traditional asset alternative.”.

– Technology. “This is the year of artificial intelligence, so trying to take a position in the companies that are leading these developments will surely pay off in the long run.“.

– International banking. “If you have the capital and the possibility of opening an account in the United States and putting resources into it, there are several fixed income products that, although they are not the most profitable, given the current economy of the country and the devaluation of the peso, could be very attractive for Colombians”.

Correa also gives some recommendations to better diversify these investments:

– Make a good budget.

– Understand that everyone can participate in investments.

– educate yourself

– Have patience.

– When choosing what to invest in, think about diversification, liquidity, choose a strong currency and, in addition, a regulation that gives confidence and support at the moment of an unforeseen event.

(See: Recommendations for investing in the midst of the global situation).

“In conclusion, it is better to have a little money in dollars invested that, even a little, will generate profitability sooner rather than later. You just have to hope that over time the devaluation does its thing and you start to earnCorrea added.

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