The rise of the euro in Colombia, which is expected to continue to rise in November 2024, is due to several economic and political factors. One of the main ones is the export balance with Europe, where key products such as oil, coffee, bananas and Hass avocados have seen a reduction compared to 2023. This decrease in exports negatively affects the entry of foreign currency into the country, weakening the local currency against the euro.

Another relevant factor is the increase in the policyrisk for Colombia. With the increase in the perception of risk, foreign investors demand higher returns to compensate for the additional risk, which increases the cost of financing for the country and discourages foreign direct investment, contributing to the depreciation of the peso and leading to the$EUR to reach 4,935 pesos in November.

In addition, uncertainty over the reforms going through Congress, which include significant increases in corporate taxes, adds an extra level of distrust and volatility to the market. Companies face higher tax burdens, which could lead to a reduction in investment and economic growth.

Taken together, these elements explain why the euro could continue to rise next month, reflecting the current economic and political tensions in Colombia.