MONEY MARKET RATES
When any person talk about the USD price, the JPY price or the EUR price, is talking about the Money Markets Rate and its volatility. Many of the prices of the actual currencies are imposed by the economy and all the people around the world can measure it with a system that is called Exchange Rate. After the WWII the world economy create this system to organize the economy to avoid a financial crisis as it happened in 1929, this system was created at Bretton Woods economic order, when the Bretton Woods plan goes down the monetary politics gained importance (Frieden, 2014, page. 4).
Nowadays, this system is very volatile but with the macroeconomic behavior and the economic politics, the local currencies and foreign currencies may have their prices. Colombia, and many nations, at this moment are passing through a crisis by the oil low prices, the China´s slowly growth and the speculative way due to the high levels of uncertainty (Riojas, 2016), this generates that the USD price goes up and the weak currencies go down, including the COP. The next graphic will show the movement of the USD/COP pair in the last week:
The last price of this pair is USD/COP is 2,929.00, clearly this is not the highest price of this pair but this price is very high than another months or years (Investing.com, 2016).
In brief, this Money Market Rate affects every company around the globe, including our organization, because the highest prices of the USD increase the prices of the basic food basket and many of the natural products that we use for our products will be very expensive to purchase, this problem has been seeing since 2015 (El País, 2015).
BIBLIOGRPAHY
El País. (4 de August de 2015). El País. Obtenido de http://www.elpais.com.co/elpais/economia/noticias/aumento-precio-dolar-empieza-afectar-costo-vida-colombianos
Frieden, J. (February de 2014). Harvard Univeristy Files. Obtenido de http://scholar.harvard.edu/files/jfrieden/files/toc_and_preface.pdf
Investing.com. (13 de August de 2016). Investing. Obtenido de http://es.investing.com/currencies/usd-cop-chart
Riojas, C. (20 de January de 2016). Expansion en alianza con CNN. Obtenido de http://expansion.mx/economia/2016/01/20/por-que-el-dolar-se-acerca-a-los-19-pesos
