The businesses that move around the dollar in the country

Opening of accounts in dollars abroad, although in high amounts, negotiation of dollars in cash, through exchange houses but which, due to the recent upward volatility, began to be scarce; possibility of investing in real estate in various countries and a remittance market of Colombian workers abroad of whom in 2021 nearly US$9,000 million arrived in the countryare part of the world of the dollar in Colombia.

(See: What is the best time to buy dollars and invest with the currency).

Even operations with exchange platforms with cryptocurrencies such as bitcoin, Ethereum and the so-called stable coins (stable currencies) are part of the menu offered in Colombia. An alternative that recently arrived in Colombia is Global66, a digital cross-border payments fintech and international money transfers in Latin America.

The firm develops a financial services platform which integrates a multi-currency digital wallet.

Users have the ability to make international transfers from their iOS or Android devices, to more than 60 destinations and with the option to receive and send money to bank accounts or between Global66 wallets in Latin America.

“Our goal is to be at the service of those users and small and medium-sized companies that have historically been financially neglected and that today demand flexible proposals that respond to their needs for globalization and access to large-scale opportunities. Whether for those who send financial support or the entrepreneur looking to internationalize their business”, assures Tomás Bercovich, co-founder and CEO of Global66.

(See: Textile, Shoe, and Plastic Industry Feel the Impact.)

BBVA has a service available for customers in the high-value segment with accounts starting at US$100,000. The opening is made through BBVA Spain and BBVA Switzerland.

Davivienda bank offers account opening in the offices of Miami and Panama. The accounts are opened from Colombia or directly in those cities.

Bancolombia has a portfolio of savings or current accounts in Panama, the same products in Puerto Rico, current account in Cayman, Panama Money Market account, in Puerto Rico and in Cayman.

The bank said that as a Colombian financial entity, Bancolombia does not open accounts abroad, and that this task corresponds to the Group’s subsidiaries in other geographies. The offer is advanced in accordance with an internationalization strategy that has been carried out Bancolombia Group.

(See: Entrepreneurs warn about the increase in prices of raw materials).

With the current price of the dollar rising above $4,000, a wave is approaching in the investment dynamics.

This has been assured by Juan Camilo Lovera, CEO of Vivamos de los realestates, who affirms that to invest in Real Estate abroad it is better to play the cards with a pessimistic dynamic that the dollar will not be below $4,000.

“It is more favorable to anticipate and play as if the dollar is going to reach $5,000. Taking this into account, the sooner they begin to invest, the more convenient it will be, not only because of the increase in the dollar, because it will continue to rise, but also because the return that will be in dollars will be seen in pesos.”, said Lovera.

The expert also recommends not only viewing the US market with models to double the investment, but also in Mexico, in the Riviera Maya.

With the sharp rise in the price of the dollar in recent weeks, the market for buying and selling cash at exchange houses had practically dried up.
Spokespersons for several of these entities, which do not have a regulated price and are based on supply and demand, They told Portfolio that between Wednesday and Friday the liquidity returned from the clients who went to sell.

This was due to the sharp drop in the official price of the currency, above $220.

Thus, eight exchange houses, consulted in 5 cities, assured that in the face of the depression in the price, many they tried to make a profit by selling at prices above $4,500.

It must be remembered that on Tuesday the Market Representative Rate (official dollar) reached a maximum level of $4,627.46 and although these exchange houses do not take this price into account, it does serve as a parameter when negotiating. It should be noted that on Friday they bought between $4,000 and $4,100 and sold between $4,300 and $4,440.

(See: Dollar: concern about its impact on the country continues).

In 2021, Colombian labor abroad sent US$8,597 million to the country, confirming that it has become an important source of resources and in the current situation, the families that receive these resources see their monthly income alleviated or reinforced.

According to the Banco de la República, last year’s figure rrepresents a growth of 24.4% compared to that registered in 2020 (US$6,908 million), when it had also been a historical figure.

One way of explaining the figure for 2021 (US$8,597 million) is to say that practically, on average, US$1 million arrived in Colombia every hour for these income from work, US$23.6 million per day.

The most recent figure available shows that remittances during May 2022, reached US$841 million.

The data for the fifth month of the year corresponds to the highest monthly result so far in 2022: at the moment it had been the figure for April, when remittances of the order of US$754 million were reached. The accumulated figure for the fifth month reached US$3,641 million.

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