If you’re thinking about moving to Colombia or expanding your investments here, the recent decline in the U.S. dollar’s value might raise some concerns. However, it’s important to remember that a falling global currency like the dollar doesn’t automatically mean the Colombian peso is “strong” in a traditional sense. Instead, these currency shifts reflect complex economic factors both globally and locally.

While a stronger peso against the dollar can increase the dollar cost of investing in Colombia, potentially creating hurdles for new foreign investors, the whole picture includes opportunities as well. To make smarter decisions, it’s essential to weigh both the challenges and advantages this currency dynamic brings to foreign direct investments.

For foreign investors, it’s the fall in the dollar’s value relative to the Colombian peso that creates challenges. When the dollar declines in Colombia, your dollars buy fewer pesos than before. That means Colombian assets like real estate, businesses, or shares, priced in pesos, become effectively more expensive in dollar terms.

For years, the attractive USD to COP exchange rate made investing in Colombia feel like a bargain, as your dollar stretched far. However, as the dollar’s value has fallen by around 7-10% since early 2025, according to recent reports, the cost to acquire Colombian assets has risen in dollar terms. This increases the upfront dollar capital required, which can be a significant hurdle for new foreign investment.

Moreover, this dynamic can slow foreign direct investment inflows, especially from investors for whom currency valuation matters deeply. Investors face not only higher entry costs but also added uncertainty from exchange rate risks when looking at potential returns. It’s important to note that, according to recent analyses, Colombia’s currency moves are mostly independent of broader global shifts in the dollar’s international status.