Colombia’s peso on Thursday dropped further against the dollar, which is now selling at more than COP2,900 due to falling oil prices.
According to Colombia’s stock exchange, the dollar broke through the COP2,900 barrier around 10:30 Monday morning and continued its upward trend afterwards.
The drop followed news that Brent crude oil fell below $50 at the Intercontinental Exchange in London.
Exactly a year ago, one dollar was worth 1,881 pesos, but its value came under pressure due to dropping oil prices since September last year.
Since then, the Colombian peso lost 35% of its value against the dollar.
Oil makes up more than half of Colombia’s exports and the country’s government is dependent on oil revenue for the financing of 20% of government spending.
Due to the falling oil revenue, the national government has already proposed a budget proposal for 2016 with severe austerity measures.
Additionally, the dollar hike is pushing up inflation levels in the South American country.