Colombia’s Peso Strengthens to Around 3,300 per US Dollar After a Surprise Rate Hike
ECONOMY · COLOMBIA
Key Facts
- —The country Colombia, Latin America’s fourth-largest economy and an oil, coal and coffee exporter, whose peso floats freely against the US dollar.
- —What happened On Thursday 1 October 2026 the peso touched 3,269 per US dollar in morning trade and hovered near 3,300, a day after a surprise rate hike (La República).
- —The numbers The official reference rate (TRM) for 1 October is 3,312.84, down from 3,341.23 a day earlier. The central bank lifted its rate to 12.25% from 12.00% on 30 September.
- —What it means for you Dollar earners get fewer pesos; peso earners pay less for imports and US trips. La República put a US trip 14.3% cheaper than a year ago.
- —Still open Where the peso closes on Thursday, and whether talks with the International Monetary Fund (IMF) produce a formal programme. None has been agreed so far.
Colombia’s peso strengthens to around 3,300 per US dollar after the central bank raised interest rates by surprise. On Thursday morning, 1 October 2026, it traded as strong as 3,269, according to the business daily La República.
By late morning it stood near 3,300, still below the day’s official reference rate of 3,312.84. Higher local rates make peso deposits and bonds more attractive to foreign investors.
Why the peso strengthens after the hike
The Banco de la República, Colombia’s central bank, raised its policy rate by 25 basis points to 12.25% on Wednesday 30 September. Most analysts had expected a hold, as Colombia Markets: COLCAP Slips 0.38% as BanRep Surprises With 12.25% Hike reported.
Four of the seven board members backed the quarter-point move, the bank’s statement said. Two voted to hold and one wanted a half-point hike.
La República and the financial daily Portafolio both tied Thursday’s peso gains directly to that decision.
La República recorded a morning range of 3,269 to 3,346 pesos per dollar, with about US$793 million traded. Its late-morning quote of 3,300.39 matched the 3,303.88 shown by Portafolio.
A turnaround after a weak September
The gain follows a rough stretch for the currency. Portafolio reported that the dollar rose 3.40% against the peso between 18 and 25 September, from 3,183 to 3,291.
Over twelve months the picture is calmer. The reference rate stood at 3,908.12 on 29 September 2025, against 3,349.63 a year later, La República noted.
Live Market IntelligenceColombia — Live Market Board
Rio Times · Live Market Intelligence
Colombia — Live Market Board
-0.46%
186,885.49
+0.29%
64,214.36
-1.38%
10,881.28
-0.80%
2,781,799
-1.33%
2,537.48
-0.46%
59,831.84
-0.49%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| COLCAP | 2,537.48 | -0.46% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| USD/COP | 3,140 | +0.03% | -22.04% | 3,139 | 3,141 | 3,105 | — |
| BRENT | 88.88 | -0.03% | +34.42% | 88.91 | 90.07 | 88.12 | 29,713 |
| WTI | 83.11 | -0.11% | +31.57% | 83.20 | 84.35 | 82.40 | 166,848 |
| ECOPETROL | 16.92 | -0.53% | +98.01% | 17.01 | 17.05 | 16.79 | 737,591 |
| BANCOLOMBIA | 95.87 | -2.18% | +96.15% | 98.01 | 100.36 | 95.73 | 188,740 |
| GRUPO AVAL | 5.40 | +2.66% | +76.89% | 5.26 | 5.49 | 5.32 | 146,447 |
| TECNOGLASS | 42.30 | -1.10% | -48.04% | 42.77 | 42.73 | 42.05 | 60,908 |
| CREDICORP | 375.17 | -0.49% | +49.60% | 377.00 | 384.43 | 372.27 | 88,375 |
| BUENAVENTURA | 34.45 | -1.02% | +88.07% | 34.80 | 35.62 | 34.33 | 275,831 |
| SOUTHERN COPPER | 193.97 | -0.26% | +104.01% | 194.48 | 199.36 | 192.59 | 367,102 |
IMF talks frame the fiscal path
The second driver is the budget. IMF deputy managing director Nigel Clarke held talks with Colombian officials in Bogotá between 25 and 28 September, Portafolio reported.
He met Vice President José Manuel Restrepo, Finance Minister Miguel Gómez and central bank governor Leonardo Villar. No loan, credit line or programme was agreed, according to Portafolio.
Instead the two sides opened technical working sessions on how the Fund might support a fiscal adjustment. Clarke described the discussions as “very productive and frank”.
The government had already asked the Fund to bring forward its routine annual review, as covered in Colombia IMF Review Sought Early as Debt Nears Its 71% Legal Ceiling.
What it means for expats and savers
When the peso strengthens, anyone paid in dollars gets fewer pesos per paycheque. Peso earners see the reverse, with cheaper imported goods and travel.
La República calculated that a trip to the United States costs 14.3% less in pesos than a year ago. It compared reference rates on 29 September of each year.
Borrowers face the other side of the coin. The hike makes credit dearer, as explained in Colombia Raises Its Policy Rate to 12.25%: What Expats and Savers Need to Know.
What Is Not Yet Known
Thursday’s closing rate was not available at the time of writing, so it is unclear whether the peso strengthens further. Midday levels can reverse, as the late-September swing showed.
It is also unclear whether the IMF contacts will lead to a formal programme, and on what terms. Higher US interest rates could still pull money back towards the dollar.
Sources: La República, dollar and oil prices, 1 October 2026; La República, US travel costs, 30 September 2026; Portafolio, dollar after the rate decision, 1 October 2026; Portafolio, dollar jumps 3.40%, 29 September 2026; Portafolio, IMF and IDB support, 30 September 2026; Banco de la República board statement, 30 September 2026.
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