Colombia peso hits record low, dollar closing in on COP3000 mark

(Image credit: Julian Castro)

Colombia’s peso hit its lowest point of the century on Thursday morning with one US dollar worth 2,972 pesos, eight pesos more than the previous record set in 2003.

For a year, the peso has been losing value against the dollar due to low crude oil prices.

Oil makes up more than half of Colombia’s exports and 20% of government revenue.

The record low of the peso has forced the government to propose cutting government spending in the 2016 budget, while having to up this year’s projected inflation from 3% to 4.5%.

Nevertheless, Colombia’s Central Bank president seemed not too worried about the national economy.

According to Caracol Radio, Central Bank President Jose Dario Uribe said “the depreciation of the peso is a natural economic phenomenon.”

 

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