The uncertainty and volatility has caused the markets to be affected by the price of the dollar. In addition, due to the increase in inflation and economic instability worldwide, a definitive solution is not in sight.
(Cybersecurity, the biggest challenge of digital currencies).
For this reason, foreign capital and even that of some Colombians have left the country to seek refuge in more stable economies, this translates into the need to obtain dollars to take them out of the country, making them more expensive.
Taking into account the behavior of the currency, from January 1 to October 3, 2022, it has appreciated by 15.31%, going from $3,981.16 to $4,590.54 pesos per dollar.
(The Colombian peso, among the most devalued currencies in Latin America).
For Colombians, this rise in the dollar has negative consequences because some goods and services can increase in value, more exactly those products that come from abroad.
Bearing this scenario in mind, below, we present recommendations to mitigate the impact of the rise in the dollar, Andrés Jiménez Cortes, professor and master’s degree in finance at the Konrad Lorenz University Foundation Business School.
(The bolívar lost half its value after a year of reconversion).
Tips to make money
– Avoid buying items that are imported, since these products are traded in dollars, making them more expensive at the rate that the currency does.
– Postpone international travel, since your expenses will not be in Colombian pesos but in dollars.
– Try to buy national productssince there are products that require raw materials from abroad, which makes the products more expensive.
– Try not to get into debt with dollars, since not only interest must be paid, but also the increase in the cost of the dollar.
– Get out of debts in dollars as soon as possible, since the level of uncertainty is high and it is not known when the market will stabilize.
– Take advantage of this time to save in dollarssince interest is not only earned on savings, but also on the increase in the currency.
– It is time to export, the effect of the rising dollar makes national products more competitive versus international products.
BRIEFCASE
For Colombians, this rise in the dollar brings negative consequences because some goods and services can increase their value, more precisely those products that come from abroad.
For Andrés Jiménez Cortes, professor and master in finance at the Business School of the Konrad Lorenz University Foundation, the following recommendations should be taken into account to mitigate the impact of the rise in the dollar:
Avoid buying items that are imported, since these products are traded in dollars, making them more expensive at the rate that the currency does.
Postpone international trips, since your expenses will not be in Colombian pesos but in dollars, it is better to travel in the country so that your money goes further.
Try to make your purchases of purely national products, this is because there are products that require certain raw materials from abroad, which makes the products more expensive.
Be careful if you are thinking of borrowing with dollars, since you will not only have to pay interest, but you will have to assume the increase in the cost of the dollar.
If you have debts in dollars, it is best to get out of them as soon as possible, since the level of uncertainty is high and it is not known when the market will stabilize.
If you want to save, you can take advantage of this time to do it in dollars, since you will not only earn interest on your savings, but you will also earn the increase in the dollar.
But if you have savings in dollars, try to keep them to get the benefit of the increase in the currency.
It is time to export, the effect of the increase in the price of the dollar makes national products more competitive compared to international products, due to the decrease in the cost of the Colombian currency.
