Antioquia could be one of the regions that comes out better with the historically expensive dollar in Colombia. It is worth mentioning that on the day of last Friday, July 15, the currency ended at an average of $4,395 and adjusted the third day lowering after the meeting registered since the end of June, a period in which it reached a peak of $4,625.
In the midst of the concern that this has unleashed due to the impact that it may have on the cost of living for households, there is a flip side to the situation, since the department of Antioquia is the one that earns the most dollars from exports and is not far behind either. in the area of remittances.
In the first five months of 2022 alone, exports of US$2,885 million were registered from Antioquia and it surpassed the region that follows it in the ranking by 64%: Bogotá (see graph).
Why is this good? It must be remembered that Colombia operates a free exchange rate fluctuation regime, that is, the price of the dollar depends on the amount of those bills that enter to be negotiated in the official market or in exchange houses.
Based on this, it can be inferred that the paisa exporters contribute the largest amount of incoming foreign currency to the country and are part of the group that is accumulating the best profits with the current price of the “green ticket”.
Hence the importance that local businessmen have given to the Internationalization Mission, which contains the roadmap to further increase international sales.
“Antioquia is one of the country’s great players in international markets, since more than 20% of national exports come from local companies, that speaks very well of its export vocation,” Alejandro Torres, director, recently told EL COLOMBIANO. of economic development of Proantioquia.
However, the expert insisted that shipments abroad must not only grow, but that more added value must be added to the products so that the amounts disbursed by them increase.
And the remittances?
With a cutoff to the first quarter of 2022, according to the Bank of the Republic, US$2,046 million in remittances entered Colombia and Antioquia channeled US$680 million of that global amount.
Only Valle del Cauca, with an income of US$969 million, surpassed the territory of Antioquia in receiving dollars sent by Colombians abroad.
Economists explain that these bills are injected into the local economy and end up making it more dynamic through greater consumption by the receiving families.
In this sense, Javier Díaz Molina, president of the National Association of Foreign Trade (Analdex), had commented to this newspaper that those who receive remittances and salaries in dollars are part of the group that receives the best profits with a dollar above $4,300.
However, the same experts point out that remittances would yield more to families to the extent that the cost of living remains stable, something that is not happening in Colombia or in the rest of the world.
For now, the Consumer Price Index (CPI), which measures how the values that people pay for products and services are rising, reached a ceiling of 9.67% in June and continues well above the 3% set as goal by the BanRep. This for the sake of not losing the purchasing power of wages.
In the case of Medellín, according to the National Administrative Department of Statistics (Dane), the cost of living in June reached 9.80%. In other words, it is above the national average.
What’s next with the dollar
Last week, more precisely on Wednesday, July 13, the price of the dollar fell after breaking its record ceiling for seven consecutive days. In that order of ideas, the analysts explained that it is a normal correction in the value of the currency.
The experts in financial markets pointed out that the world will be attentive to the announcements of the Federal Reserve (Fed), counterpart of the Bank of the Republic in the USA, since if it continues to increase its interest rates aggressively, the price of the dollar could have new cycles to the upside.