The dollar is forecast to reach 4,200 on May 31, 2022.

analysts expect the dollar to close the month at $4,072.17, with a high of $4,200.

Dollar closed at an average price of $4,070.26, with a drop of $40.2 against the TRM.

The dollar has registered an upward trend in the last weeks, according to analysts’ projections, this trend would continue in the coming days, closing the month close to $4,100.

The latest Survey of Expectations of the Bank of the Republic, in which analysts expect the price of the greenback in Colombia to average $4,072.17 on May 31, with a minimum in the projections of $3,950 and a maximum of $4,200.

In spite of the upward trend, analysts’ projections indicate that the price of the currency will start to decrease during the year and will reach an average of $3,851.63.

How to hedge against the rise of the dollar?

With inflation and the rising price of the dollar, a loss in purchasing power is evident. In view of this, some experts assure that buying dollars could work as a hedge.

“What could be an interesting investment for Colombians, as a hedge, is to buy dollars, because normally when the stock markets start to fall, the dollar starts to rise. And in the United States, with the normalization of the interest rate, and with the control of inflation, the behavior of the dollar has been rising, but there is still room for the dollar in Colombia to have a kind of appreciation. If the markets devaluate, if the economy slows down, the dollar will serve as a cushion for the loss of purchasing power”, explained Alexander Ríos, financial expert.

In fact, LR calculated that the dollar in exchange houses is sold at an average of $3,916.53; that is, the street dollar is sold $194 cheaper than in banks, with today’s TRM ($4,110.53).

On the other hand, there are also some applications that will allow you to change the local currency to dollars, save and make payments in that currency, such as PayPal, AirTM and Payoneer. However, experts recommend getting advice.

Source: La República.

https://www.larepublica.co/finanzas/dolar-podria-llegar-hasta-a-4-200-al-31-de-mayo-como-protegerse-de-la-devaluacion-3364223