Colombian peso strengthens as dollar approaches 3,100 level

The Colombian peso continues to show strength against the US dollar, with the exchange rate (TRM) recorded at 3,128.65 pesos on August 16, 2026. This represents a decline of approximately 16.7% since the start of the year and a 22.2% decrease over the last twelve months.

In July 2026, the currency experienced a significant surge, with the dollar dropping nearly 9% from 3,440.83 to 3,132.42 pesos. Recent market activity shows the dollar closing at 3,099.18 pesos in a single session, though the downward trend has shown signs of moderation in the last week.

Several factors are driving this performance, including the monetary policy of the Banco de la República. While regional neighbors have begun cutting rates, Colombia's central bank has maintained a tightening cycle, holding the policy rate at 12% as of July 31, 2026. The bank's decision was notable for a split 4-3 vote among board members.

The currency rally comes as Abelardo de la Espriella took office as president on August 7, 2026. Markets have reacted positively to the administration's direction, even as the country manages sticky inflation and fragile public finances.