Colombia currency guide: The Colombian peso (COP)

Colombia’s nearly 2,000 miles of coastline and northern Andes Mountains consistently attract visitors from around the globe. Named after Christopher Columbus, Colombia offers so much to do and see. But before making a trip to the South American country, you’ll need to learn about the country’s native currency, the Colombian peso.

This guide can serve as a useful tool in helping you send money to Colombia, use Colombian currency, and learn helpful tips for exchanging your dollars for Colombian pesos.

Note: Before making travel plans, check the US Department of State website for the latest travel advisory information.

What is the currency in Colombia?

Colombia’s peso, identified by the code COP, uses the symbol “$.” It’s often displayed as “COL$” to differentiate it from other currencies using the same sign, such as the US dollar (USD).

Banknotes range from $2,000 to $100,000 in the following denominations:

• $2,000
• $5,000
• $10,000
• $20,000
• $50,000
• $100,000

Coins come in denominations of:

• $100
• $200
• $500
• $1,000

While the peso is divided into centavos (with 1 peso equaling 100 centavos), Colombia no longer issues centavo denominations because of the country’s high inflation. It stopped minting centavo coins in 1984.

The Colombian government has tasked the Banco de la República (Bank of the Republic), headquartered in Bogotá, with issuing the peso and shaping the country’s economic policies.

History of the Colombian peso

Colombian currency experienced four distinct periods before the emergence of the peso that’s used today:

Spanish colonial period

The Spanish colonized Colombia in the 16th century. Until 1820, Colombians’ primary currency was the Spanish colonial real—the currency of Spanish colonies in America and the Philippines.

Colombian real

Colombia began its fight for independence from the Spanish in 1810, but the struggle for independence lasted until 1819. Colombia continued using the real as its main currency during this time. After 1820, the country got its own version of the currency—the Colombian real.

Silver peso

In 1837, the Colombian peso replaced the real at a rate of 1 peso to 8 reales. The original peso was minted in silver.

Gold peso

Colombia moved to a gold standard in the 1880s when it introduced the gold peso, which was pegged to the price of gold. Peso banknotes were used in this version of the economy, and gold’s backing helped stabilize the country’s economy. Colombia abandoned the gold standard when the Great Depression of the 1930s hit global markets.

Colombian peso

The government created the modern-day peso in 1931 as a fiat currency issued and controlled by the government. As a floating rate currency, the peso underwent long periods of inflation during the 1980s and 1990s—and once again beginning in 2014.

7 tips for exchanging US dollars to pesos

Want to exchange your US dollars for Colombian pesos? It helps to know the ins and outs of converting USD to COP. Whether traveling to the country or sending cash to family or friends there, here are some tips for turning your dollars into Colombian money.

1. Research and compare exchange rates

The exchange rate one bank or financial institution might offer could differ from the rate you receive at an ATM or other money exchange service. Therefore, you’ll want to compare rates across several options to make sure you’re getting a competitive rate for your exchange.

2. Notify your bank ahead of traveling

As a precaution, your bank may flag transactions from foreign countries since they may appear fraudulent. So, before traveling, let your bank know exactly where you plan to go. That way, your account won’t get frozen when you attempt to pay for goods with Colombian money. Make sure to include travel details like dates and the countries you’re visiting so your bank has the necessary information to keep your account secure.

3. Avoid exchanging money at airports, hotels, and tourist areas

Whether you’re flying into Bogotá, Medellín, Cali, or any of Colombia’s other international airports, skip the money exchange kiosk and head straight for the exit. While you’ll find exchange services for Colombian currency at your arrival airport, what you won’t find is a fair exchange rate. The same is often true for hotels, which are also best avoided for money exchange.

Lastly, tourist areas are ripe with fraudsters looking to take advantage of unsuspecting travelers. This is especially true for unlicensed money exchangers or street vendors who could be looking to swindle you out of cash with abysmal exchange rates or even counterfeit banknotes.

4. Consider commissions and fees

Whether you convert to Colombia currency using an ATM, bank, money exchange kiosk, or online platform, consider the total fees or commissions you’ll pay for your exchange. Factor in the impact of fees when choosing where to exchange money.

Exchange fees you might encounter when converting currency include:

• Transaction fee: A flat fee charged each time you exchange money.
• Foreign transaction fee: Often charged by credit card companies or banks for foreign purchases.
• Commission: A percentage of the total amount of the exchange.
• Bank transfer fee: Charged for conducting international bank transfers.
• Dynamic currency conversion fee (DCC): Charged when a merchant converts a purchase into your home currency.

5. Opt to be charged in the Colombian currency when withdrawing money from ATMs

Using an ATM can be one of the best ways to exchange currency quickly. However, ATMs also often charge you ATM usage fees, foreign transaction fees, and currency conversion fees.

You can avoid a currency conversion fee if you choose to be charged in Colombia’s currency, not dollars. This means your bank will handle the currency conversion, helping reduce the cost of using an ATM. It may also provide a better exchange rate by allowing your bank to process the currency conversion.

6. Exchange money in Colombia instead of the US

You might be eager to get Colombian currency while still at home, but that’s usually not your best option. It’s unlikely your bank carries Colombian peso banknotes, and even if they do, it’ll probably offer a poor exchange rate.

Instead, wait until you arrive in Colombia to get pesos. There, you’ll have many more options to convert currency and may also pay less in fees.

7. Use reputable exchanges

The last thing you want to worry about is whether you’re using an unauthorized, or even fraudulent, money exchange service. Licensed banks are reliable but are generally only open from 8:00 am to 4:00 pm, Monday to Friday. ATMs are always accessible but may charge hefty fees for converting currency.

You can always use Western Union agents located across Colombia that offer exchange services. And if you don’t go in person, you can always use the Western Union^® money transfer app or online platform to send money to Colombia conveniently, with data encryption and transfer tracking included.

Using money in Colombia

Using Colombian pesos is the best way to pay for goods and services in the country. Here are some important things to know about using Colombian currency.

Can you use US dollars in Colombia?

You may find some Colombian merchants who are quite happy to accept dollars. But because the dollar is not the country’s official currency, you won’t find many places that take it.

Instead, locate the nearest Western Union agent location to convert your dollars to Colombian money, which will be accepted everywhere in the country. Doing so also makes it easier to transact, as you won’t have to worry about calculating currency conversion each time you make a purchase.

Tipping etiquette in Colombia

Tipping restaurant workers, hotel staff, and other service workers is fairly common in Colombia. If you pay by credit card at a restaurant or other establishment, you won’t be able to add a tip later in Colombia money, as you can in the United States.

Some restaurants will include a 10% service fee on the bill without asking for it. This is known as a “propina voluntaria” (voluntary tip), as you typically can ask to have it removed if you believe you received substandard service. Other establishments may ask if you’d like to add a tip to your bill before paying.

You’ll need small banknotes to tip for taxis, hotel staff, and other workers. Convert your dollars to pesos and carry enough banknotes to cover instances when you’d like to tip.

Where to get Colombian pesos near me?

As previously mentioned, there are many places to convert your dollars to Colombia’s currency. Each option has its benefits and drawbacks.

Exchange method	Pro	Con
Airport	Convenient	Offers poor exchange rates
Hotel	Convenient	Offers poor exchange rates
ATM	Available 24/7	High fees
Bank	Trustworthy	Limited hours

 

Unlike these exchange methods, Western Union offers in-person services and online currency conversion when you need to find a currency exchange near you. It’s also great for sending money to someone in Colombia from abroad.