Colombia News | Colombia Reports
  • News
    • General
    • Analysis
    • War and peace
    • Elections
    • Economy
    • Culture
    • Sports
    • Science and Tech
  • Travel
    • General
    • Bogota
    • Medellin
    • Cali
    • Cartagena
    • Antioquia
    • Caribbean
    • Pacific
    • Coffee region
    • Amazon
    • Southwest Colombia
    • Northeast Colombia
    • Central Colombia
  • Data
    • Economy
    • Crime and security
    • War and peace
    • Development
    • Cities
    • Regions
    • Provinces
  • Profiles
    • Organized crime
    • Politics
    • Armed conflict
    • Economy
    • Sports
  • Lite
  • Opinion
  • About us
  • Support us
  • Contact Us
  • Intelligence
  • Advertising
  • Newsletter
Colombia News | Colombia Reports
  • News
    • General
    • Analysis
    • War and peace
    • Elections
    • Economy
    • Culture
    • Sports
    • Science and Tech
  • Travel
    • General
    • Bogota
    • Medellin
    • Cali
    • Cartagena
    • Antioquia
    • Caribbean
    • Pacific
    • Coffee region
    • Amazon
    • Southwest Colombia
    • Northeast Colombia
    • Central Colombia
  • Data
    • Economy
    • Crime and security
    • War and peace
    • Development
    • Cities
    • Regions
    • Provinces
  • Profiles
    • Organized crime
    • Politics
    • Armed conflict
    • Economy
    • Sports
  • Lite
  • Opinion
Economy

Colombia’s central bank: External factors drive peso surge

by Adriaan Alsema January 11, 2012

Colombia news - Jose Dario Uribe

Colombian central bank chairman Jose Dario Uribe on Wednesday blamed the recent sharp appreciation of the peso in January on external factors, mainly a better economic outlook for the U.S.

“There’s a common factor in the recent appreciation of emerging market currencies and that is the external factor,” Uribe said in interview with local radio RCN. “There have been relatively good news in the U.S. and that has given investors some tranquility,” he added.

The peso has appreciated sharply since the start of the year, gaining 4% from the end of 2011.

Analysts have pointed to a strong domestic economic performance, with gross domestic product expanding a whopping 7.7% in the third quarter, along with a boom in foreign direct investment, as the main factors driving the peso’s surge.

Uribe, however, said that the main reason behind the peso’s recent strength has been external.

If the peso’s recent surge continues, it could represent a major economic challenge for the administration of President Juan Manuel Santos. Exporters in the past have called for the government to step in to limit the peso’s appreciation, which makes their products less competitive abroad.

The central bank last year intervened in the spot market by buying $20 million daily to absorb dollars in attempt to limit the peso’s volatility. That purchase program ended in September after the peso weakened sharply against the greenback, making the dollar acquisitions less necessary.

The central bank replaced it with a plan to buy or sell foreign-exchange options if the exchange rate moves more than 5% from a 20-day moving average. The bank hasn’t yet been forced to step in.

Central BankColombia pesoeconomyJose Dario Uribe

Trending

  • Bogota and Medellin lock down as COVID saturates Colombia’s hospitals

  • Colombia discovers local coronavirus mutation

  • Colombia discards new COVID lockdown as new surge continues

Weekly interviews and news updates

Related articles

  • Colombia not considering new coronavirus lockdown

  • Colombia’s central bank elects IMF executive as new president

  • Colombia’s central bank slightly more optimistic about coronavirus recession

  • Facebook
  • Twitter
  • Linkedin
  • RSS

@2008-2019 - Colombia Reports. All Rights Reserved.
Powered by Digitale Zaken and Parrolabs


Back To Top