Colombia’s Peso Slides Past 3,100 per Dollar: What It Means for Expats
Money: Colombia
Key Facts
- —The TRM fixing in force on Thursday 27 August is 3,118.24 pesos per dollar, up 1.19 percent from Wednesday’s 3,081.67.
- —Wednesday’s spot session closed at 3,128.50, a 1.24 percent daily weakening of the peso and the dollar’s first finish above 3,100 since August 18.
- —Context: even after the bounce, the dollar fell about 18.5 percent against the peso this year through last week, its weakest run since 2018.
- —Drivers: cheaper oil, a firmer US dollar after a hot inflation reading, and caution ahead of Colombia’s September tax debate.
- —For you: US$1,000 converts to COP 3,118,240 at today’s TRM, about COP 61,730 more than a week ago.
The Colombian peso, the region’s star currency of 2026, has given back ground this week. If you earn in dollars, your money suddenly goes further; if you earn in pesos, imported prices just crept up.
What actually happened this week
Colombia’s official exchange rate, the TRM, is computed each day from the previous session’s trading and published by the financial superintendency. The fixing valid for Thursday 27 August is 3,118.24 pesos per dollar, up from 3,081.67 on Wednesday and 3,056.51 on Tuesday. In two days, the peso has weakened about 2 percent against the dollar.
The spot market tells the same story in real time. Wednesday’s session closed at 3,128.50 pesos per dollar, up 1.24 percent on the day. That is the first time the dollar has finished above 3,100 since August 18, ending a run in which the peso seemed untouchable.
None of this erases the bigger picture. Through last week, the dollar had fallen about 18.5 percent against the peso in 2026, at one point touching its weakest level since 2018. This week’s move is a correction within a strong-peso year, not a reversal of it.
Why the peso is sliding
Three forces are working together. First, oil. Colombia earns a large share of its export income from crude, and oil prices fell this week, which mechanically softens demand for pesos. State-controlled Ecopetrol carries enough weight in the local stock index that cheaper crude drags the whole market.
Second, the US dollar. July’s US PCE inflation reading, the Federal Reserve’s preferred gauge, came in at 3.7 percent year on year on Wednesday, above forecasts. That revived talk that the Fed’s next move could be a rate rise rather than a cut, firming the dollar against most emerging-market currencies at once.
Third, local caution. Colombia’s new government has confirmed it will file a structural tax reform in September, targeting exemptions that grew from about COP 68 trillion in 2019 to more than COP 136 trillion in 2023, roughly US$22 billion to US$45 billion at this week’s rates. Markets tend to go quiet and defensive before fiscal fights.
What it means for your money
If you are paid in dollars or hold dollar savings, the move works for you. A US$1,000 transfer converts to COP 3,118,240 at today’s TRM, against COP 3,056,510 at last Tuesday’s fixing. That is roughly COP 61,730 more per thousand dollars, close to US$20 in a week.
Rent arithmetic shows the same effect. A COP 3,000,000 monthly rent cost about US$981 at last week’s rate and about US$962 today. Landlords who index to the dollar will notice the shift within weeks; peso-denominated leases do not move.
If you are paid in pesos and spend in dollars, everything runs the other way. US subscriptions, imported electronics and dollar-priced travel all cost slightly more this week. The peso’s twelve-month picture, though, remains far stronger than in any recent year.
One practical note on the TRM itself: it is a fixing set in advance. The rate in force today was computed from Wednesday’s trading, so today’s spot moves will only appear in the fixing published for Friday. If the dollar keeps climbing in Thursday’s session, the official rate follows tomorrow.
What to watch next
The immediate variable is Friday’s Jackson Hole keynote by Fed chair Kevin Warsh at 10 a.m. New York time, his first in the job. A hawkish tone would extend the dollar’s bounce; a calm one would likely let the peso settle back below 3,100.
After that, watch oil and the September tax bill. A further slide in crude keeps pressure on the peso, while the shape of the tax reform will set the fiscal narrative into year-end. Colombia’s business confidence reading, due today, gives a first hint of how the private sector is digesting the new government’s first month.
What is Colombia’s official exchange rate today?
The TRM in force on Thursday 27 August is 3,118.24 pesos per dollar, up 1.19 percent from Wednesday’s fixing of 3,081.67. Wednesday’s spot session closed at 3,128.50, the dollar’s first finish above 3,100 since August 18.
Is the peso’s long rally over?
Not on this evidence. The dollar fell about 18.5 percent against the peso this year through last week and hit its weakest level since 2018. This week’s move is a roughly 2 percent pullback driven by cheaper oil and a firmer US dollar, a correction within a strong-peso year rather than a trend break.
What does the weaker peso mean for my rent?
If your lease is in pesos, nothing changes contractually. A COP 3,000,000 rent costs about US$962 at today’s TRM, against about US$981 a week ago, so dollar earners gain a little room. Dollar-indexed leases will reflect the shift at the next adjustment.
Sources
- Superfinanciera de Colombia — TRM series, via datos.gov.co, 27 August 2026
- Banco de la República — exchange-rate policy and market context
- US Bureau of Economic Analysis — July 2026 PCE price index
- Portafolio — market coverage of the peso’s 2026 rally
- Ministerio de Hacienda y Crédito Público — tax reform announcements, August 2026
More: Colombia news in English, every day from The Rio Times. See also: today’s LatAm Expat & Nomad Daily Guide and why your Brazilian power bill just dropped.
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