Colombia’s central bank purchased $400 million in January, in line with its policy of soaking up dollars from the currency market in a bid to halt the peso’s surge, the bank said in a statement Monday.
Total dollar purchases by the central bank in 2010 reached $3.06 billion. The central bank has said that it will carry out its dollar-buying program of a minimum of $20 million daily at least until May 15.
The dollar purchases have been the main tool used by the government to rein in appreciation of the peso, which closed 2010 at COP1,920 to the dollar, compared with COP2,043 at the end of 2009.
Most analysts expect large inflows of foreign investment to continue to strengthen the peso this year. On Monday the peso closed at COP1,868.70 to the dollar from COP1,872.00 on Friday.