Colombian peso: devaluation against the dollar in 2020

Devaluation is the decrease in the value of the national currency with respect to some foreign currencies.

In this publication you will learn about the devaluation of the Colombian peso during the year 2020.

In the technical language of macroeconomics it is reiterative to speak of two terms: devaluation and revaluation; such concepts refer to the change in value of a currency, depending on the increase or decrease with respect to other foreign currencies.

Devaluation occurs when a country’s currency decreases in value compared to other foreign currencies; therefore, this concept is the complete opposite of revaluation, which occurs when a country’s currency increases in value compared to other foreign currencies.

According to the information reported in the Bulletin of Economic Indicators of last January 4, 2020, published by the Bank of the Republic of Colombia, the peso devaluated at a rate of 4.74 % on December 31, 2020.The above, considering that the TRM, at the end of 2019, closed at $3,277.14, and in 2020 it closed at $3,432.50.

This increase is higher than that produced on December 31, 2019, when it was found that the Colombian peso devalued at a rate of 0.84 % with respect to the rate on December 31, 2018.

Source: Actualize