Colombia finance minister thinks dollar ‘soon’ to hit 2000-peso mark

Colombia’s finance minister said on Wednesday that he expects the US dollar to hit the 2,000 peso mark “soon” after a year-long slide during which the currency lost nearly 12% of value against the dollar.

“I get the impression [the dollar] will reach [the 2,000 peso] very soon. It’s a matter of hours of days,” Finance Minister Mauricio Cardenas was quoted as saying by Caracol Radio while on a visit to Spain.

The minister stressed the ongoing devaluation of Colombia’s currency is good news for exporters, particularly in agricultural sectors that have long suffered the consequences of an appreciating peso.

For years, analysts feared the possibility the Colombian currency could start suffering “Dutch Disease” as exports of fossil fuels like oil and coal were causing an influx of dollars that upped the price of iconic export products like flowers and coffee.

For these and other sectors, the current devaluation “is a breathe of fresh air,” said Cardenas.

The last time the dollar stood above the 2,000 peso mark was in December 2009.

Sources

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