The rise of the dollar has generated uncertainty in the markets and in the country. Even its volatility has made it reach above 4,600 Colombian pesos. And, for the moment, it remains above 4,500 pesos.
(Read: Difference between the Spot dollar, Next Day, TRM and in exchange houses).
Now, this variation has seen its effects on the markets and investments. However, experts agree that it will also affect ordinary citizens.
For Carlos Sepúlveda, dean of the Faculty of Economics at the Universidad del Rosariothe first impact will be on imported products, having a reflection on household spending.
One of the items affected is technological itemsthat represent a large part of imports that are made in the country, and would increase in price.
The effects will also be in food.
“A large part of the food production chain imports fertilizers and inputs of various kinds. That causes food prices to be affected. In general, there is going to be an inflation“, he points out.
The expert clarifies, in turn, that the strongest effect is on the poorest households. “Those homes that they are not poor, but they are vulnerable and they are on that edge of poverty, they will see higher inflation and fall into a situation of poverty,” explains Sepúlveda.
And he clarifies that the consequences depend on the conditions of each home. For example, the bull run will impact those who have debts in dollars and investments in this currency.
For his part, Juan Camilo Pardo, an economist and member of Corficolombiana, assures that the devaluation of the Colombian peso against the dollar will have an impact on traded goods.
“In the country there are some key inputs in agriculture for the local production of food such as corn and soybeans, which are important to give balanced feed to animals that is used for cows“, given.
And other major affected will be processed foods. “When there is a devaluation in the exchange rate, imported goods have a higher cost when converted to local currency and this ends up affecting the cost of inputs for agricultural producers, which ends up translating into higher food inflation.“, he assures.
(Also: Petro and dollars: can you ‘put them up for sale’ and lower their price?).
Another sector that would have problems would be the importation of cars and in vehicle spare parts, as well as that of toiletries and personal care products.
“The effect is not only on the markets, but also on ordinary people,” Pardo points out.
On the other hand, those goods produced in Colombia that are sold abroad will tend to be more competitive.