Táchira agricultural sector calls for ban on Colombian peso

The agricultural sector in Táchira, Venezuela, is facing economic instability due to the widespread use of the Colombian peso in border transactions. Edgar Medina, president of the Association of Livestock Producers of Táchira (Asogata), has called on national and regional authorities to prohibit the use of the peso to prevent speculation. Medina reported that local businesses, including hardware and agricultural stores, have transitioned into informal exchange houses, exploiting exchange rate differentials. He noted that the value of the peso relative to the dollar has shifted significantly, causing producers to lose approximately 25% in exchange value, which hinders the purchase of essential supplies and machinery.

In contrast, border analyst William Gómez argues against a prohibition, suggesting instead that the region needs the formal reactivation of exchange houses. Gómez contends that the Colombian peso serves as a financial safeguard for citizens amidst high inflation and the devaluation of the Venezuelan bolívar. He noted that the bolívar has seen significant devaluation this year, while the peso has appreciated against the dollar. According to Gómez, prohibiting the currency would negatively impact cross-border economic movement, and that formalizing exchange operations would better combat clandestine speculators.