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07-21-23 06:09 #7018
Posts: 1105Originally Posted by Huacho [View Original Post]
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07-21-23 01:23 #7017
Posts: 2058You can over simplify the subject. Those who want to understand need to do the work.
With all due respect:
If it was really that simple then then take the issue of a negative balance of trade: The U.S. balance of trade in goods and, more broadly, the current account, have been in deficit for decades. Year after year, Americans buy more goods in global markets than they sell. Using what has been written below that would make the USD one of the of the weakest currencies in the world. We all know WHY it is not. This is not to the place to get into it. This is forum for Colombia and I posted an article about why the Colombian Peso is strong against the dollar.
Inflation is another case. You got the definition right there (thanks for quoting me and not giving me credit). And inflation has been fairly aggressive in in Colombia. But it is not being caused by the the strength of the COP against the USD.
Originally Posted by Huacho [View Original Post]
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07-19-23 16:25 #7016
Posts: 713To simplify, exchange rates are largely dependent on two factors: the relative "real" (inflation adjusted) interest rates (higher = stronger currency), and the balance of trade. A negative balance of trade represents a future obligation to buy other currencies, and so leads to a weaker currency. And, inflation is caused by too much money (demand) chasing too few goods (supply). In Latin countries, unlike in the Yew Ess, the printing press is in the hands of the legislative branch. They then implement programs they don't have the money to pay for, so they print more money and you have constant, annoying inflation.
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07-19-23 03:04 #7015
Posts: 2058Individuals who are trying compare international exchange rates of a country on the international market to internal inflation inside of a country are comparing apples to oranges.
Instead of just doing the equivalent of the reach around and fling, some of ya'll up in here should actually spend some time reading the financial news and educating yourselves on international financial affairs as I have done.
For example: https://www.bloomberglinea.com/engli...-appreciation/#text=For%20 Juan%20 David%20 Ball%C3%A9 and%2 see%20 director, the%20 market%2 see%20 among%20 other%20 reasons.
Written in April 2023 this article does an excellent job of describing the reasons for the volatility in what has historically been a very strong currency against the USD.
There is a certain individual that wants to take my words and twist them. He has a bone to pick with me because my opinion differs from his on the attractiveness of girls in Colombia to girls in the Dominican Republic. He has now taken this rather small, insignificant difference of opinion and carried it over to the General Information thread in the Colombia section. After all who care what I think about the attractiveness of girls in Colombia as compared to the Dominican Republic. Man Law 101: No man should be telling another man who he should fuck nor how to spend his hard earned money. Reasonable people can disagree. But reasonable people should not be making accusations and trolling me from thread to thread country to country.
I am not going to spend my time teaching international finance to wage slaves. But if you are international businessman such as myself, part of your success depends on knowing the actual factors that play into international exchange rates.
Inflation in Colombia is NOT being caused by exchange rates And especially not food inflation. Colombia only imports 10% of its food. By any measure on a macro economic basis when country with a strong domestic economy (Like Colombia) and has a strong currency, that is a positive because the USD is the worlds reserve currency and the currency of exchange. When you can buy more dollars with your currency that is a plus for the economy on a macro economic level.
Inflation is a macro economic factor inside of a local economy. The experts say that: When the US Dollar weakens, products bought abroad or brought from abroad usually drop in price. Some examples are computers, cell phones, business machines, food or raw materials to produce food, among others.
What is the cause of inflation in Colombia. Here I have to advise everyone does not know why to review your Economics 101 course. Inflation is caused by too much money chasing too few goods. In Colombia as it is all over the world. Anyone concerned about inflation should hold a currency immune from it. Get out of the Fiat currency system and place your store of value into the strongest currency that you are able to hold and self custody.
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07-17-23 00:23 #7014
Posts: 707Not to mention
Originally Posted by Manizales911 [View Original Post]
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07-17-23 00:12 #7013
Posts: 707My first time in Colombia
Originally Posted by JjBee62 [View Original Post]
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07-16-23 16:40 #7012
Posts: 5486Originally Posted by LatinaLover#1 [View Original Post]
For comparison, when Trump took office the rate was just under 3 k and was at 3500 when he left. Briefly, early 2020, the rate hit 4 k while everything was shutdown. Unless you were in Colombia during the pandemic shutdown (or sending money to Colombia), you're complaining about getting a better rate than you ever got while Trump was President, have been getting between 500 and 1500 more and blaming it all on Biden.
Don't worry. There were also people screaming that when Petro took office the rate would sail past 5 k and Colombian currency would be like Venezuelan currency.
Personally, I don't worry about it. My first time in Colombia it was 1900 to 1. During most of my time here it was 3 k. 5 k would be great, but if 4 k is what I get, 4 k is what I'm happy with.
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07-16-23 16:23 #7011
Posts: 2468Originally Posted by SubCmdr [View Original Post]
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07-16-23 15:55 #7010
Posts: 707My post was for Americans coming from USA to live or vaca in Colombia
Originally Posted by SubCmdr [View Original Post]
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07-16-23 15:48 #7009
Posts: 15972Originally Posted by MoonShot [View Original Post]
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07-16-23 04:01 #7008
Posts: 737Aruba
This post is for JJBee62. The Aruba post section is under "Caribbean", "Lesser Antilles" Section.
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07-16-23 03:03 #7007
Posts: 2058Take a look at the big picture
You do understand that you are describing that the COP has claimed 20% against the dollar. I do not see how that is negative if you are Colombian. If you are not referring to the political administration running Colombia then you are in the wrong thread. There are two sides to every trade. One side wins, One side loses. Right now the people of Colombia are winning. You have to look at the macro and micro aspects of the economy in Colombia that might be bidding up the price of the COP in the currency markets.
Because if you think it is just because of what the USD is doing you need to expand your perspective. Worldwide the USD versus other currencies vary and is not universal. For example currently in the Dominican Republic the USD is on fire and the DOP is dropping like a rock.
Originally Posted by LatinaLover#1 [View Original Post]
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07-16-23 03:02 #7006
Posts: 15972Originally Posted by JjBee62 [View Original Post]
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07-16-23 02:58 #7005
Posts: 578Currency Moves
Originally Posted by LatinaLover#1 [View Original Post]
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07-16-23 02:43 #7004
Posts: 707Not a fan of the current administration, in no way, shape or form but
The exchange rate is down from a high of 5000 to just a hair above 4000 that is a drop of 20% in about a year, an incredible drop. I'm not a currency guy but It has to be the Liberal administrations out of control spending and fiscal policy in general. I wish I could say the rate of slide down can't continue but nothing on the horizon seems to say it won't. Do any of your currency guys see any good news coming?