Today, due to the devaluation of the Colombian peso, doing the calculations in dollars, a McDonald’s cashier in Miami earns the same as a deputy minister of Colombia. This is what the journalist Sebastián Nohra wrote on Twitter to talk about the depreciation of the local currency against the United States.
More or less, according to the journalist’s accounts, a teller in Miami earns 2,500 dollars a month, the same salary as a deputy minister in the country, that is, 11,600,000 dollars.
According to a report from the economic portal Portafolio, the combination of economic, international and local geopolitical factors caused the dollar in Colombia to register a new maximum for this weekend and on Tuesday, reaching $4,636.83.
“During 2022 the dollar in Colombia has risen $655 after opening the year at $3,981.16. In the banking market, the currency closed on Friday at $4,704, a figure that represents an increase of $120 compared to the previous close after having opened at $4,555. The minimum price of the dollar in the banking market was $4,548 and the maximum reached $4,707, the highest value in interbank trading in history,” the report specified.
The average price was $4,636.84, according to the records of the Banco de la República.
Portafolio explained that the scenarios of a possible global economic recession that could affect Colombia, the almost certain rise in interest rates in the United States to combat inflation and the persistent war in Ukraine that affects the prices of various inputs remain the main factors of the international situation for the dollar market.
But there are also economic and political elements in Colombia that, according to analysts, contribute uncertainty in the dollar market.
Corficolombiana, in a recent analysis, pointed out that the exchange rate has bordered historical maximums during the last few days, which has translated into a depreciation of almost 25% since the beginning of the second quarter.
“Although the dollar has strengthened across the board against the world’s major currencies – including those of developed countries – the Colombian peso is showing greater volatility and one of the steepest depreciations in the world.”
According to Corficolombiana, in 2022, the peso has weakened against regional currencies, although the depreciation is less against the Chilean peso.
The vulnerabilities of Chile and Colombia associated with high fiscal and external deficits, as well as political uncertainty due to the renewal of the government in both countries and the constitutional reform in Chile, have increased devaluation pressures and volatility in both cases against peers. the region.
But since May 31, the Colombian peso has depreciated 6.2% against the Chilean, and 9.5% since June 22.