What Is the Currency in Colombia?

Understanding the local currency is important for managing financial transactions when visiting or conducting business in Colombia. Familiarity with the official currency ensures smooth daily operations, from purchasing goods to settling services.

The Colombian Peso

The official currency of Colombia is the Colombian Peso. Its common symbol is “$”, often clarified as “COP$” or “COL$” to avoid confusion with other currencies. The international standard ISO 4217 currency code for the Colombian Peso is COP.

The Colombian Peso functions as a fiat currency, meaning its value is not backed by a physical commodity like gold or silver. Instead, its value is derived from government decree and public trust in the issuing central bank, the Banco de la República. This system allows the central bank flexibility in managing the nation’s money supply and economic stability.

Using Local Currency

Colombian Peso banknotes are currently issued in denominations of 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, and 100,000 pesos. Coins are available in denominations of 50, 100, 200, 500, and 1,000 pesos. While 50-peso coins are still legal tender, they are rarely used due to their low value, with most cash transactions rounded to the nearest 100 pesos.

For everyday transactions like bus fares, small purchases, or street vendors, smaller denominations such as 1,000, 2,000, 5,000, and 10,000 peso notes are most practical. Businesses, especially smaller ones, may find it challenging to provide change for large bills like 50,000 or 100,000 peso notes for small purchases. Cash remains prevalent for many transactions, particularly in local markets and for street vendors. Credit and debit cards are accepted in major cities and larger establishments.

Currency Exchange

The most common methods for obtaining Colombian Pesos include using ATMs, visiting official exchange houses (casas de cambio), or exchanging currency at banks. ATMs are widely available in urban areas and offer competitive exchange rates, though they may charge transaction fees ranging from COP 10,000 to COP 28,500 per transaction. Decline any dynamic currency conversion offered by an ATM and choose to be charged in Colombian Pesos, allowing your own bank to handle the conversion for a better rate.

Official exchange houses provide convenient services, particularly in tourist areas, but compare rates to ensure a fair deal. Most banks in Colombia do not directly exchange foreign currency, so dedicated exchange houses or ATMs are preferred options. Before traveling, notify your bank of your international travel plans to avoid card suspension and to inquire about any foreign transaction fees.