The dollar closed Friday at 3,475.78 pesos, its lowest level since January 2021, driven by local and international factors.
The Colombian peso has revalued 19.4 % against the dollar over the past twelve months, the largest appreciation among emerging-market currencies. It is followed by the Hungarian forint at 14 % and the Russian ruble at 10.5 %.
Since Gustavo Petro took office, the dollar has fallen nearly 20 %. This performance has only been seen in two earlier periods since 2000.
Analysts attribute the peso’s strength to several factors. These include oil prices near 90 dollars per barrel, high local interest rates and record remittance flows.
Andrés Pardo, head of Macroeconomic Strategy for Latin America at XP Investments, noted that recent days were also influenced by reduced risk aversion due to possible U.S.-Iran agreements and expectations of a political shift toward more market-friendly policies.