The Colombian government has ruled out federal help to the country’s export
sector, which is hurting because of the appreciation of the peso.
Bogota does not have the money, it says.
The export sector urged government intervention because the dollar has sunk in value below 2000 pesos. This has made Colombian products expensive for the U.S. market, which is already suffering one of the biggest economic crisis in decades.
The country’s Central Bank did respond to the exporters’ call to massively buy dollars, resulting in a slightly less expensive peso on Monday.
However, the government is not able to help, according to Finance Minister Oscar Ivan Zuluaga, because its fiscal position simply does not allow it. Zuluaga reminded the exporters that the government already lent a helping hand on a number of occasions last year, when the peso also saw peaks in value.
“Today we do not have this fiscal slack and that creates restrictions [for the government],” Zuluaga was quoted by newspaper El Espectador.
The dollar went from 2300 pesos three months ago to almost 1900 pesos last week.