Money in Colombia

Official Currency: The Colombian Peso (COP)

Understanding the Bills and Coins

• Banknotes (Billetes): Common denominations you will handle are 2,000, 5,000, 10,000, 20,000, 50,000, and the largest, 100,000 COP.
• Coins (Monedas): You’ll frequently use coins in denominations of 50, 100, 200, 500, and 1,000 COP.
• Local Lingo: Listen for prices quoted in “mil”, which means “thousand”. For instance, a price of “veinte mil” means 20,000 pesos.
• Large Bills: Be mindful that smaller vendors, local shops, and taxi drivers may not have sufficient change for 50,000 and 100,000 COP banknotes. It is a good practice to break these larger bills at supermarkets or established restaurants early in your day.

Exchange Rates & Quick Conversion

• Fluctuating Rates: The value of the Colombian Peso relative to your home currency is not fixed and changes daily based on global markets.
• Conversion Tools: For the most accurate, real-time rates, we recommend a reliable mobile application like XE Currency. It’s useful to check it before making significant purchases or exchanging money.
• Mental Math Tip: For a quick, approximate conversion from COP to USD / Euro, a helpful trick is to remove the last three zeros from the price and divide the remaining number by four. For example, a 40,000 COP item is roughly $10 USD (40 / 4 = 10).

Accessing Your Money: Cash vs. Cards

Using ATMs (Cajeros Automáticos)

CRITICAL REMINDER: Before you depart, you must notify your bank and credit card companies of your travel dates and destinations. This simple step prevents their fraud detection systems from flagging legitimate transactions abroad and blocking your cards when you need them most.

• Best Way to Get Cash: Withdrawing directly from an ATM is typically the most efficient method for obtaining Colombian Pesos. It provides a fair market exchange rate, often better than what currency exchange houses offer.
• Recommended Banks: The ATM with the highest limit and the lowest fees in Colombia are “Servibanca” allowing you to withdraw up to 2.000.000 Cop at once. Otherwise major banks such as Bancolombia, Davivienda, or BBVA are well-maintained and have reasonable fees.
• Withdrawal Limits: Be aware of daily withdrawal limits. The Colombian bank’s ATM may have a per-transaction limit (often around 600,000 – 800,000 COP), and your home bank will have its own daily limit. Plan accordingly if you need a larger amount of cash.
• Safety First: Prioritize your security by using ATMs situated inside bank branches, large supermarkets, or modern shopping malls. It is best to make withdrawals during daylight hours. Always shield the keypad with your hand when entering your PIN.
• Fees : Be aware that you will be charged an average of 7€ / USD per withdrawal.

Using Credit & Debit Cards

• Where They Work: Major credit cards, especially Visa and Mastercard, are widely accepted in cities at hotels, formal restaurants, and larger retail chains.
• When to Use Cash: Cash is indispensable. You will need it for transactions in smaller towns, at local markets, for street food, in taxis, and at most small, family-operated businesses. A strategy that relies solely on cards is not viable.
• Always Pay in Local Currency (COP): If a card terminal gives you the option to pay in your home currency or in COP, always choose COP. The alternative, known as Dynamic Currency Conversion, allows the merchant to set their own exchange rate, which is invariably less favorable for you.
• Foreign Transaction Fees: Contact your bank to understand their policy on foreign transaction fees. These fees, typically 1-3% of each purchase, can accumulate. If you travel often, consider acquiring a credit card that waives these fees.

Exchanging Foreign Currency

• Where to Exchange: If you need to exchange cash, do so only at official exchange bureaus, known as `casas de cambio`. These are located at airports and within commercial areas of major cities. You will be required to present your passport for the transaction.
• What to Avoid: Never exchange money with individuals who approach you on the street. You will be offered a poor rate and face a significant risk of receiving counterfeit banknotes.
• Best Currencies to Bring: US Dollars are the most easily exchanged foreign currency, with Euros being a close second. Exchanging other currencies can be challenging outside of the international airport in Bogotá.

Tipping (Propina)

• Restaurants: In most mid-range to upscale restaurants, a “voluntary” 10% tip, or `propina voluntaria`, is automatically included in the bill. Your server is required to ask if you agree to its inclusion. It is customary to accept unless the service was exceptionally poor.
• Tour Guides & Private Drivers: For good service, a tip is a very welcome gesture. A guideline for a full-day tour is between 20,000 and 30,000 COP per person.
• Taxis: Tipping taxi drivers is not a standard practice. However, rounding up the fare to the nearest 1,000 COP is a common and appreciated gesture.
• Hotel Staff: It is appropriate to offer a small tip of 2,000 to 5,000 COP to porters for handling your luggage or to housekeeping for their service.

Tipping during an organized tour

It all depends on you! Tipping in Colombia has become the norm only in tourist areas, and it is now expected from those who assist you for a few hours or more.

A reasonable “tipping” budget should range from $60 to $120 per person, depending on the length of the trip and the participant’s satisfaction.

Giving “too little” may be frowned upon by your hosts, and giving “too much” can skew the relationship to this “tip” and may create expectations that will not be met by every group.

How much should you tip?

This is a discretionary expense, but it is expected and should remain reasonable. It’s up to you to strike the right balance.

Unless a team member delivers an exceptional performance that you wish to reward, the hierarchy of roles must be observed.

The largest tip should go to the local guide ($5 to $15 per day per person – 10,000 COP to 50,000 COP), followed by the logistics team: assistants, cooks, porters, muleteers, etc. ($3 to $5 per day per person – 10,000 COP to 20,000 COP), and finally to the drivers ($3 to $5 per day per person – 10,000 COP to 20,000 COP).

Bargaining

• When it’s Appropriate: Bargaining is a normal and often expected part of the shopping experience at artisan markets, craft fairs, and with street vendors. Approach it with a friendly spirit.
• When it’s Not: Do not attempt to bargain in establishments with clearly marked, fixed prices. This includes supermarkets, formal boutiques, restaurants, and hotels.
• How to Do It: Maintain a polite and pleasant demeanor. A reasonable approach is to counter the initial asking price with an offer that is 20-30% lower and find a middle ground from there.
• Important considerations : If haggling over prices is normal and expected, try not to take it too far. Everyone deserves to make a decent living. Try to learn about fair prices before you start to bargain

Daily Budgeting Guidelines

Sample Costs

To help you plan, here are some approximate costs for common items. Prices can vary between cities and establishments.

• Street Food: An empanada or arepa: 3,000 – 5,000 COP
• Drinks: A small, local coffee (`tinto`): 1,500 – 2,500 COP / A local beer: 4,000 – 7,000 COP
• Meals: A set lunch (`menú del día`): 12,000 – 20,000 COP / Dinner at a mid-range restaurant: 30,000 – 60,000 COP per person
• Transport: A short taxi ride in a city: 8,000 – 15,000 COP / A single metro or bus ticket: ~2,500 COP

Cash on Hand

Safety: For your security, avoid carrying large amounts of cash with you. Store your passport, excess currency, and a backup credit or debit card in your hotel safe.

Be discreet with your cash. Remember that Colombian wages are much lower than in the United States and Canada. Don’t tempt fate by flashing a wad of bills when you’re counting your money.