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Colombia Peso: The Outlook
Will the peso depreciate
more or start appreciating?
BY JOACHIM BAMRUD
CALI, Colombia -- While the government emphasizes the benefits of Colombia’s peso depreciating – especially for exporters – many local companies and economists are expressing concern about the impact on everything from imports to inflation.
The peso (COP) has lost 52 percent of its value compared to the US dollar the past 12 months, going from 1,972 pesos per US dollar to 3,001 pesos per US dollar. In the eight-month period from December 31st to August 31, it lost 29 percent, going from 2,376 per US dollar to 3,075 per US dollar.
Both
President Juan Manuel Santos and
finance minister Mauricio Cardenas
have repeatedly said the depreciation is a natural result of the lower oil and
mining revenues, which at one point overheated the economy and had led to an
over-appreciation of the peso.
Meanwhile, the central bank is split on what action to take. However, a central
bank survey among economists shows that most believe the bank next month will
raise interest rates for the first time in more than a year to curb
the fastest inflation in six years, Bloomberg reports.
What is the outlook the rest of the year and next year?
Latinvex asked several experts.
Full story
Keywords: Bulltick Capital Markets, China, Nomura, oil, mining, Organizacion Luis Carlos Sarmiento Angulo Ltda, Standard Chartered Bank, US
