Dollar in Colombia starts trading lower after Nicolás Petro’s strong statements

Since the capture of Nicolás Petro, in the early hours of Saturday, July 29, the country has been plunged into a strong political upheaval. His capture, with which the Colombian justice authorities seek to hold him accountable for charges of illicit enrichment, not only put the family of President Gustavo Petro in the eye of the storm, but also the stability of the national government. The current political turbulence ends up impacting the price of the dollar in Colombia.

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According to the declarations of President Petro’s eldest son, the illicit enrichment for which he was captured is only a part of the big scandal he uncovered yesterday, August 3, in which the financing of Gustavo Petro’s 2022 presidential campaign is involved with illicit money, in addition to exceeding the ceilings allowed by the Colombian electoral authorities.

The delicate institutional crisis, which has caused this situation, coincides with the reduction of the price of the dollar in Colombia today, as was evidenced last June 5.

At that time, the then president of the House of Representatives, David Racero, announced that the reforms of the national government were frozen in the Congress of the Republic, a fact preceded by the scandal between the ex-ambassador of Venezuela, Armando Benedetti, and the ex-chief of Cabinet, Laura Sarabia.

Well, the TRM on Monday, June 6 was $4,355.80 and since that day the price of the dollar in Colombia began a downward trend that led the TRM to be in the range between $4,200 and $3,900 at the end of July.

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The capture of Nicolás Petro and his recent statements have led the dollar in Colombia to trade lower.

Well, as in that moment of government crisis, Nicolás Petro’s recent statements seem to have had an impact on intraday dollar trading today, August 4, when the TRM opened in the markets at $4,144.79 ($87.80 more than in the previous day) and, during the first hours of the day the weighted average price of the dollar in Colombia fell to $4,088.63 at 10:30 am.

This happens after the price of the dollar in Colombia showed a slight recovery, after a downward trend in the last weeks of July, when in less than 15 days the TRM went from $4,069.39, on July 18, to touch the floor of $3,898.48, on August 1.

Strong crisis in Gustavo Petro’s government

The government crisis marked a turning point yesterday, August 3, with the explosive statements made by Nicolás Petro about Gustavo Petro’s 2022 presidential campaign.

The declarations of President Petro’s eldest son are highly complex and could further shake the delicate situation of the national government, after he affirmed, under oath, that illegal money entered Gustavo Petro’s 2022 presidential campaign.

According to Nicolás’ statement, illicit money entered the campaign of President Petro, part of which came from a former drug trafficker.

Mario Andrés Burgos, the delegated prosecutor before the Superior Court, said, “About the financing of the last presidential campaign of the current president, Dr. Gustavo Petro Urrego, and the money that entered the campaign, which, apparently, would have exceeded the minimum ceilings allowed by law, and part of this money would not have been properly reported to the electoral authorities”.

In this situation, not only the President of the Republic and his son are involved, but also the current president of Ecopetrol, Ricardo Roa, who started in his position on April 24 and since his appointment has aroused some criticism due to his relationship with President Petro’s campaign.

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