Latin American countries grapple with volatile dollar rates and policy responses

In Bolivia, legislators urged a ceiling on the flexible dollar rate after the peso‑dollar price rose to 10.85 bolivianos and projections suggest it could reach 20 by year‑end. They criticised the current regime as a “patch” and called for tighter controls.

In Colombia, the dollar fell to a 2026 low of about 3,260 pesos per US$ – the cheapest level since mid‑2019 – driven by a 12% local policy rate, carry‑trade inflows and reduced political uncertainty after recent elections. The official Tasa Representativa del Mercado (TRM) on 18 July was 3,262.58 pesos, up 1.28% from the previous day but still well below 3,500.

Financial advisers warned Colombian savers against speculative buying, recommending gradual purchases, debt amortisation in dollars and cash‑flow planning for remittances.

Venezuela saw its bolívar devalue 15.6% in July, with the official rate climbing to 732.47 bolívars per US$ from 633.36 at the month’s start. The gap between the official and parallel rates narrowed from around 40% to under 20% after central‑bank interventions and increased official dollar supply, while inflation accelerated to 13.8% in June.

In Argentina, economists highlighted the long‑term loss of purchasing power in the US dollar and urged households not to keep dollars at home. They recommended diversified investments such as real assets, inflation‑linked bonds and equity exposure to preserve wealth amid persistent local inflation.