Argentina and Colombia face significant currency and monetary shifts

In Argentina, the Central Bank (BCRA) reported a significant surge in dollar demand during July. Approximately 1.7 million individuals purchased physical banknotes totaling USD 3,319 million, marking the highest level since the 2025 elections. Net purchases for savings reached USD 2,916 million. The funds were distributed among local bank deposits (USD 1,000 million), external assets (USD 1,000 million), and service/tourism expenses (USD 900 million). This trend is attributed to exchange rate uncertainty and seasonal factors like holiday spending.

In Colombia, the economic landscape is characterized by fluctuations in the exchange rate and central bank policy. The Banco de la República has maintained a restrictive monetary policy to combat inflation, which stood at 12% in July 2026. While the Colombian peso has seen periods of appreciation, the dollar has recently shown upward trends, influenced by global strength and domestic fiscal discussions. This volatility has impacted various sectors; for instance, travel agencies report increased sales due to cheaper international travel but face reduced profitability because of the rapid currency shifts. Additionally, while a weaker peso can lower the cost of some imported inputs, it has not immediately translated to lower food prices for consumers due to previous high-cost purchases and supply issues.