When embarking on a trip to Colombia, understanding the local currency and how to manage your finances is essential for a smooth and enjoyable experience. This guide provides you with everything you need to know about Colombian Money, from currency exchange to payment methods and tipping etiquette, ensuring you’re financially prepared for your Colombian adventure.
The official currency of Colombia is the Colombian Peso, abbreviated as COP. You’ll see prices displayed with a dollar sign ($), which can be initially confusing for visitors, as it represents Colombian Pesos, not US dollars. Don’t be misled – COP$1,000,000 might sound like a fortune, but it’s more realistically enough for a comfortable stay in a good hotel for a few nights, showcasing the favorable exchange rates for international travelers.
Colombian banknotes come in denominations of $1,000, $2,000, $5,000, $10,000, $20,000, $50,000, and $100,000. Coins have denominations of $50, $100, $200, $500, and $1,000. It’s worth noting that Colombian coins underwent a redesign in 2016, so you might encounter two different versions of the same denomination in circulation. While Colombia doesn’t technically have cents, the term “centavos” is the Spanish equivalent.
A diverse collection of Colombian Peso banknotes and coins issued in 2016, showcasing various denominations.
The Colombian Peso’s value has fluctuated, particularly due to global oil price shifts, which has, at times, made Colombia an exceptionally affordable destination for international tourists. For instance, around early 2020, the exchange rate was approximately COP$4,000 to one U.S. dollar. Keep an eye on current exchange rates before your trip to understand your spending power.
Exchanging currency in Colombia requires knowing where to go. Unlike in some countries, most banks in Colombia do not offer currency exchange services. Instead, you’ll need to visit “casas de cambio” or money exchange bureaus, which are readily available in major cities. While you might encounter street money changers, especially in tourist hotspots like Cartagena, it’s strongly advised to avoid these informal exchanges due to safety and fairness concerns.
For accessing your funds, ATMs are widely considered the most convenient method for travelers in Colombia. “Cajeros automáticos” (ATMs) are prevalent throughout the country, except in very small towns or remote areas. While withdrawal fees can be relatively high and vary between banks, ATMs offer easy access to Colombian money. Transaction limits usually range from COP$300,000 to $500,000 (roughly US$150-250), and daily withdrawal limits may apply, often around COP$1,000,000.
Credit and debit card usage is increasingly common in Colombia, particularly in larger establishments in cities. However, it’s important to note that online credit card transactions are less common outside of major airlines and some ticketing platforms like Tuboleta or Colboletos. When paying with cards, you’ll typically be asked whether it’s a credit or debit card (“crédito” or “débito”).
“Consignaciones,” or bank transfers, are another payment method you might encounter, especially for booking accommodations in more remote areas like Providencia or for tour packages. While making these deposits in person can be inconvenient, especially for those unfamiliar with the Colombian banking system, it can reduce the need to carry large amounts of cash. To make a “consignación,” you’ll need the recipient’s bank account details (account number and whether it’s “corriente” – checking, or “ahorros” – savings), identification, and possibly a fingerprint. Always retain the deposit receipt as proof of payment.
Traveler’s checks are generally not recommended as they can be difficult to cash in Colombia. While US dollars might be accepted in some tourist-heavy areas like Cartagena, it’s not a reliable or widely accepted form of payment. If you need to receive money from abroad, Western Union offices are available in major Colombian cities.
Be aware of counterfeit Colombian bills, as they are a known issue, and tourists are often targeted. Vendors like bar staff, taxi drivers, and street sellers are sometimes culprits. It’s wise to carry smaller denominations to minimize receiving large bills as change and to carefully inspect any large bills you receive. Similarly, be cautious about accepting tattered or torn bills, as these might be problematic to use later.
Tipping in Colombia has its own customs. In most sit-down restaurants, a 10% service charge is often automatically included in the bill. Waiters are supposed to ask ““¿Desea incluir el servicio?”” (“Would you like to include the service in the bill?”), but this isn’t always done with tourists. If service is exceptional, you can leave an additional cash tip. Tipping isn’t expected in bars or cafes, though tip jars are becoming more common. It’s sometimes perceived that international visitors should tip more generously than locals. In smaller towns, tipping is less customary.
A close-up of a Colombian 1000 peso coin, highlighting its design and value.
Taxi drivers are not typically tipped. However, if you feel your driver was particularly helpful, safe, or made extra stops, rounding up the fare is a kind gesture. You could say ““Quédese con las vueltas por favor”” (“Keep the change”). Be aware that sometimes, especially for non-Colombian visitors, a “tip” might already be added to the fare.
In hotels, tipping porters around COP$5,000 for luggage assistance is sufficient, unless you have a significant amount of luggage. While not mandatory, tips for housekeeping staff are appreciated.
Finally, non-Colombian visitors may be eligible for a refund on the 19% Value Added Tax (VAT) on purchases of clothing, jewelry, and other items totaling over COP$300,000. To claim this refund, save all credit card receipts and complete Form 1344 (available on the DIAN website – www.dian.gov.co). Submit this form to the DIAN office at the airport before departure, and be prepared to show the purchased items before checking your luggage.
Understanding these aspects of Colombian money will empower you to manage your finances confidently during your trip, allowing you to focus on enjoying the rich culture and experiences Colombia has to offer.
