The Colombian Peso (COP) is the official currency of Colombia, a large and diverse country in South America. 

The currency is issued and managed by the Banco de la República, which functions as Colombia’s central bank.

People use the COP for everything, from buying food at the market to paying for services like transportation and utilities.

The symbol for the Colombian Peso is “$” or “COP$”

Though it uses the $ symbol, it’s important to remember that this is not the US Dollar. 

Whenever you see prices in Colombia, they will be in Colombian Pesos unless otherwise stated. For example, 10,000 COP is how they write 10,000 pesos.

Exchange Rate with the US Dollar

The value of the Colombian Peso changes based on the economy and international markets, which means its exchange rate with the US Dollar can go up or down. 

In 2024, the exchange rate is, 1 USD = 4,196.81 COP.

Checking the latest rates before exchanging money is always a good idea.

Banknotes of the Colombian Peso

The Colombian Peso has different banknotes, each with a unique color, design, and size.

• $1,000 COP: This is one of the smaller denominations and is mostly red. It features Jorge Eliécer Gaitán, a famous Colombian politician. The size of the banknote is 130 x 65 mm.
• $2,000 COP: This banknote is purple and features José Asunción Silva, a well-known Colombian poet. Its size is 130 x 65 mm.
• $5,000: The $5,000 banknote is brown and features José María Córdova, a Colombian military hero. The banknote is 140 x 70 mm.
• $10,000 COP: This note is green and has a portrait of Policarpa Salavarrieta, a Colombian revolutionary. The size is 140 x 70 mm.
• $20,000: The $20,000 bill is orange and shows Alfonso López Michelsen, a former Colombian president. The banknote is 148 x 73 mm.
• $50,000: This banknote is blue and features the image of Gabriel García Márquez, a famous Colombian writer and Nobel Prize winner. The note measures 148 x 73 mm.
• $100,000 COP: This is the largest banknote in circulation, colored light blue with a portrait of Carlos Lleras Restrepo, another former Colombian president. It is 153 x 66 mm in size.

Coins of the Colombian Peso

The Colombian Peso also comes in various coins, which are commonly used for smaller purchases or to give change.

• 50 COP: This is a small coin often made of nickel-plated steel.
• 100 COP: A slightly larger coin, often made of the same material.
• 200 COP: This coin is made of bimetal, combining two metals.
• 500 COP: Also a bimetal coin, used for everyday transactions.
• 1,000 COP: The largest coin, also made from bimetal, and widely used in Colombia for common transactions like buying snacks or drinks.

History of the Colombian Peso

Before independence, Colombia was part of the Spanish Empire, using Spanish coins like the real and escudo made of gold and silver.

In 1810, after declaring independence, Colombia started making its own currency. The process was messy due to political issues, but by 1837, the Colombian Peso replaced the real at a rate of 1 peso for 8 reales.

In 1871, Colombia adopted a decimal system, dividing the peso into 100 centavos, and linked the peso’s value to gold.

This system stabilized the economy until 1931 when the Great Depression forced Colombia to abandon the gold standard, making the peso a fiat currency controlled by the government.

The central bank, Banco de la República, was established in 1923, bringing more stability. For much of the 20th century, the peso was called Peso Oro due to its gold connection.

However, from the 1970s to the 1990s, Colombia faced high inflation, causing a significant drop in the peso’s value.

In the 1990s, the government introduced a floating exchange rate system, which helped stabilize the currency.

In the 21st century, the peso has been more stable but still gets affected by global economic factors, especially oil prices, which influence Colombia’s economy.

How Stable is the Colombian Peso?

The Colombian Peso’s value depends on many factors, including Colombia’s economy, international trade, and the price of oil (one of the country’s major exports). 

Sometimes, the value of the peso can drop, which means more pesos are needed to buy the same goods or services. 

It can also become stronger if the country’s economy improves or if there’s high demand for Colombian goods.

Where is the Colombian Peso Used?

The Colombian Peso is used only in Colombia. If you are traveling to Colombia or planning to do business with someone there, you will need to exchange your local currency for COP. 

Most major cities and tourist areas accept credit cards, but it’s always useful to carry some cash in pesos for smaller purchases, especially in rural areas.

Conclusion

The Colombian Peso (COP) is the official currency of Colombia, represented by the $ symbol. 

It comes in a variety of colorful banknotes and practical coins. 

The exchange rate for 1 US Dollar is 1 USD = 4,196.81 COP COP, making it a useful currency for everyday transactions in Colombia. 

Knowing the Colombian Peso helps you manage your money better when visiting or doing business in Colombia.