Colombian foreign reserves grew by $3.69 billion in 2014, up to a total of $47.32 billion as of December 31, said the country’s central bank on Wednesday.
This represents an 8.4% increase when compared with the amount at the end of 2013.
The South American country’s foreign reserves continued a recent upward trend, but at a slightly slower pace than the previous year.
Foreign reserves increased over 16% in 2013.
Foreign reserves are assets held by central banks and monetary authorities in different currencies to their own.
US dollar asset purchases dominate Colombia’s foreign reserves.
The currency composition of foreign reserves were 87% US dollars, 5% Canadian dollars, 4% Australian dollars, 2% Great British pounds , 1% Swedish krona and 1% NZ dollars in mid-2014.
This currency composition seeks to replicate the performance of the country’s balance of payments expenditure, the report says.
The Central Bank accumulated proportionately fewer foreign reserves through interventions in the foreign exchange market in 2014 when compared to 2013.
The Bank of the Republic stated that the figures were caused, “mainly by the reduction in the rate of dollar purchases by the Bank of the Republic, from September 2014,” in the report.
This correlates with a sharp appreciation of the US dollar against the peso which commenced in September.
This has made US assets more expensive against the Colombian peso, reducing the government’s capability to increase US dollar foreign reserves at the same rate of 2013.
The primary component of Colombian foreign reserves is the ‘investment portfolio’, which is the investment in financial instruments in the international market, the report explained.