Colombian Peso exchange rate and related issues

[Manizales911]

Manizales911, you may need to declare that you moved the money for investment purposes. I read somewhere that declaration is necessary to be able to take the money back out of Colombia.

You are correct but in my case I have no intention of moving it back, I live here part time, I plan on spending it.

[Gimmedub]

Yes and no. The original intent was foreign real estate investments don't need to pay capital gains taxes. That can be extended to other investment areas but for the most part I don't believe the local market is set for individual foreigners opening stocks / bonds / bank accounts who don't already have a residence visa in country.

Personally I just use the ATM'S and take out 3 k / daily when moving money down south. Obviously it's small amounts but the idea is some income in pesos for when I'm down here.

Manizales911, you may need to declare that you moved the money for investment purposes. I read somewhere that declaration is necessary to be able to take the money back out of Colombia.

[Dccpa]

First target area hit $2950 - 1.

[Dccpa]

I have always kept 100% of my assets in USD, up until now. I recently opened a Colombian bank account and moved a decent amount over and will do it again if the exchange rate hits 3000-1. I always had the opinion and plan to never keep significant money in COP nor buy property in Colombia but I am beginning to have second thoughts on buying here because it has become just way too attractive.

Manizales911, you may need to declare that you moved the money for investment purposes. I read somewhere that declaration is necessary to be able to take the money back out of Colombia.

[Dccpa]

2923-1 right now, holy shit.

If the USD breaks 98/100 and continues upwards, it will be interesting to see what happens with the USD-COP exchange rate. You would normally expect a bounce off of 3000 - 1. If oil breaks March's low, my 3500/3600 - 1 scenario comes into play. Interesting times.

[RacShack]

2923-1 right now, holy shit.

Bogota Aug. 9-17, awesome exchange rate, I'll take full advantage of this! Much more fun to be had!

[Manizales911]

2923-1 right now, holy shit.

[Dccpa]

I have always kept 100% of my assets in USD, up until now. I recently opened a Colombian bank account and moved a decent amount over and will do it again if the exchange rate hits 3000-1. I always had the opinion and plan to never keep significant money in COP nor buy property in Colombia but I am beginning to have second thoughts on buying here because it has become just way too attractive.

3000 - 1 should definitely happen now. The oil breakout on Wednesday, failed on Thursday and was followed by a quick move down. 3000 is only a little over 4% higher from Friday's close.

[Manizales911]

The value of the dollar has almost doubled against the peso in the last few years. How is this fairing for boardmembers living in Colombia that hold the majority of their assets in dollars? Are you moving any differently? If that happened here in Thailand the first thing I would do is buy a plush condo that I would not buy at today's prices.

I have always kept 100% of my assets in USD, up until now. I recently opened a Colombian bank account and moved a decent amount over and will do it again if the exchange rate hits 3000-1. I always had the opinion and plan to never keep significant money in COP nor buy property in Colombia but I am beginning to have second thoughts on buying here because it has become just way too attractive.

[Gimmedub]

No plush condos here but I've started moving dollars to pesos for longer term investments. Local bonds and stocks.

The value of the dollar has almost doubled against the peso in the last few years. How is this fairing for boardmembers living in Colombia that hold the majority of their assets in dollars? Are you moving any differently? If that happened here in Thailand the first thing I would do is buy a plush condo that I would not buy at today's prices.

[Mr Enternational]

The value of the dollar has almost doubled against the peso in the last few years. How is this fairing for boardmembers living in Colombia that hold the majority of their assets in dollars? Are you moving any differently? If that happened here in Thailand the first thing I would do is buy a plush condo that I would not buy at today's prices.

[Dccpa]

If the US govt raises rates even a qtr, it means less dollars available for other countries to hold in their reserves which means that it will take more pesos to buy for each dollar thus increasing the exchange rate. The US has been broadcasting lately that it will likely raise this their by letting everyone know so they can prepare for this here and abroad. So the expectations is yes, it will go higher unless Colombia's value starts to appreciate due to strong demand for their commodities and exports. Since Colombia sits on a large reserve but the all oil is tied to Dollars it will hover around this exchange rate for now. But this is a monger board so hell yeah, expect the upside for those visiting (including me). If you really want to lock it in, go to XE website and convert your dollars to pesos. Your now locked in. Ooops, again I digressed. ENJOY it while its still good!

IMHO, the rate increase is already priced into the market. Not interested in taking delivery of pesos, I just want to lock in the exchange rate.

[SBeach25]

If oil holds today's move and starts rebounding, the COP should strengthen for a while. Not really sure how to lock in the 2850 - 1 ratio, but it would be nice.

If the US govt raises rates even a qtr, it means less dollars available for other countries to hold in their reserves which means that it will take more pesos to buy for each dollar thus increasing the exchange rate. The US has been broadcasting lately that it will likely raise this their by letting everyone know so they can prepare for this here and abroad. So the expectations is yes, it will go higher unless Colombia's value starts to appreciate due to strong demand for their commodities and exports. Since Colombia sits on a large reserve but the all oil is tied to Dollars it will hover around this exchange rate for now. But this is a monger board so hell yeah, expect the upside for those visiting (including me). If you really want to lock it in, go to XE website and convert your dollars to pesos. Your now locked in. Ooops, again I digressed. ENJOY it while its still good!

[Dccpa]

If oil holds today's move and starts rebounding, the COP should strengthen for a while. Not really sure how to lock in the 2850 - 1 ratio, but it would be nice.

[Dccpa]

That's one hell of an overshoot.

Yes it is. And if this scenario happens Colombia won't be the only country with a much weaker currency. In USD terms, assets, especially commodity assets, will be at fire sale prices in most countries of the world.