• TRM (USD/COP)COP 3,235.59 +1.65% +COP 52.60Colombia's official exchange rate (Financial Superintendence), valid Nov 4 to Nov 4
  • EuroCOP 3,617.08 +1.72% +COP 61.02Reference: TRM crossed with the European Central Bank rate of Nov 3; not the market quote
  • Mexican pesoCOP 173.98 +3.35% +COP 5.64Reference: TRM crossed with the European Central Bank rate of Nov 3; not the market quote

What the nominal exchange rate is and how it explains the peso's appreciation or depreciation against the dollar

FinanceColombiaPulzo40 s readAI summary
Image: Pulzo

The nominal exchange rate indicates how many Colombian pesos are needed to buy one US dollar. When the rate rises, the peso depreciates and imports become more expensive; when it falls, the peso appreciates, making foreign goods cheaper but reducing exporters' competitiveness. The Representative Market Rate (TRM) is calculated as the simple average of the weighted rates of daily dollar purchase and sale transactions, with participation from commercial banks, brokerage firms, the National Development Finance Company and Bancoldex. The latest published reference sets one dollar at 3,191.47 pesos.

In 40 seconds

  • The nominal exchange rate sets how many pesos are needed to buy one US dollar.
  • A rise in the rate means peso depreciation and makes imports more expensive.
  • A fall in the rate means peso appreciation and can reduce exporters' competitiveness.
Read the full story at Pulzo

IASummary generated by artificial intelligence from a story by Pulzo. It may contain errors: the original source prevails.

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