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Country decision · Latin America · Updated 31 October 2026

How far does a dollar income go across Latin America now?

A US dollar income lost buying power in every Latin American country we can measure over the latest year, if all of it is spent locally. Losses range from 1.4 percent in Ecuador to 27.2 percent in Colombia. Two forces decide it: local inflation, and how many local units a dollar buys.

By , Founding Director, Sovereo Intelligence Research. Same method and sources for every country. Research standard.

Which countries lost the most for dollar earners?

Change in what the same dollars buy over the latest 12 months available, with all spending in local currency. Colombia is highlighted.

Change in what a US dollar income buys, by country, all spending in local currency -30% -25% -20% -15% -10% -5% 0 +5% Colombia -27.2% Paraguay -19.8% Argentina -15.6% Haiti -15.1% Mexico -11.7% Costa Rica -9.6% Brazil -9.4% Peru -9.1% Chile -8.8% Dominican Republic -8.0% Uruguay -3.9% Guatemala -3.7% Nicaragua -3.5% El Salvador -3.1% Honduras -3.1% Panama -2.1% Ecuador -1.4%

Not shown: Bolivia (boliviano floated in 2026); Cuba (several official and informal exchange rates); Venezuela (official figures).

What does it mean for your budget?

Set how much of your spending is in local currency. The figures update in the table below. Nothing you enter is sent or stored.

CountryPeriodLocal prices, 12 monthsLocal units per dollarWhat the same dollars buyNote
ArgentinaAug 2026 vs Aug 202533.66%+12.8%-15.6%INDEC publishes 33.5 percent for August 2026; the index-based figure differs by rounding or rebasing
BoliviaAug 2026 vs Aug 20255.02%n/an/aBoliviano floated in 2026; the compiled rate series stops before the price month, so no dollar comparison is shown
BrazilAug 2026 vs Aug 20254.22%-5.6%-9.4%
ChileAug 2026 vs Aug 20254.13%-5.0%-8.8%
ColombiaAug 2026 vs Aug 20256.25%-22.6%-27.2%
Costa RicaJun 2026 vs Jun 2025-0.32%-9.9%-9.6%
CubaJul 2026 vs Jul 202520.70%n/an/aSeveral official and informal exchange rates; no consistent rate, so no dollar comparison is shown
Dominican RepublicJul 2026 vs Jul 20255.47%-3.0%-8.0%
EcuadorJul 2026 vs Jul 20251.39%+0.0%-1.4%Uses the US dollar
El SalvadorAug 2026 vs Aug 20253.20%+0.0%-3.1%Uses the US dollar
GuatemalaAug 2026 vs Aug 20253.37%-0.5%-3.7%
HaitiJul 2026 vs Jul 202517.42%-0.3%-15.1%
HondurasAug 2026 vs Aug 20256.20%+3.0%-3.1%
MexicoAug 2026 vs Aug 20253.26%-8.8%-11.7%
NicaraguaJul 2026 vs Jul 20253.65%+0.0%-3.5%
PanamaAug 2026 vs Aug 20252.20%+0.0%-2.1%Balboa fixed one to one with the US dollar; dollars circulate
ParaguayMar 2026 vs Mar 20251.88%-18.3%-19.8%
PeruAug 2026 vs Aug 20254.44%-5.1%-9.1%
UruguayAug 2026 vs Aug 20254.55%+0.5%-3.9%
VenezuelaAug 2026 vs Aug 2025534.21%n/an/aOfficial figures; very high inflation and a gap between official and parallel rates; no consistent rate is shown

Spending outside local currency is held flat and US inflation is not included. Conversion is at the average market rate; banks and transfer services charge more. A country's own basket can differ from a household's.

How is this calculated?

  • Prices. UN ECLAC's CEPALSTAT compiles each country's official consumer price index. We compute the 12-month change from the index levels.
  • Dollar rate. The Bank for International Settlements compiles monthly average exchange rates against the US dollar from national sources. We use the same two months as the price index.
  • Combined. What the same dollars buy = (local units per dollar now / a year ago) / (1 + local inflation), minus 1. With part of spending outside local currency, that part is held flat.
  • Checks. Colombia (6.25 percent, August) and Bolivia (5.02 percent) match their national statistics offices exactly. Argentina computes to 33.7 percent against INDEC's published 33.5 percent; the gap comes from index rounding or rebasing.
  • Dates. Each country uses its latest month with both a price index and a dollar rate, so a few rows use an earlier month. The period column says which.

What would change this picture?

  • New monthly price and rate data, which arrive at different times for each country.
  • Large currency moves: a few percent in a month changes the ranking.
  • Your own conversion cost and spending mix. For Colombia in detail, use the Colombia calculator.

Questions

Where does a dollar income go furthest in Latin America right now?

Measured as change over the latest year, a dollar income held its value best in the dollarized economies (losses of 1.4 percent in Ecuador, 2.1 percent in Panama and 3.1 percent in El Salvador) and lost the most in Colombia (27.2 percent) and Paraguay (19.8 percent), where local currencies rose against the dollar. This measures change, not the price level: a country can be cheap and still be getting more expensive for dollar earners.

Why is Colombia different on this page and on the Colombia page?

This page uses the same method for every country: monthly average exchange rates and price indexes for August 2026 against August 2025. The Colombia page uses the official daily rate (TRM) on 31 October each year and September inflation. Different periods give different results: about 27 percent here and about 23 percent there for all spending in pesos.

Is this financial advice?

No. It is an educational comparison from official compiled data, with the method shown. Your own costs, bank rates and decisions are yours.

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By , Founding Director, Sovereo Intelligence Research. Research standard.