Colombia Government Announces Measures To Dampen Peso

Colombia’s government has announced a series of measures aimed at easing the pressure on the exchange rate and to help weaken the strengthening peso. It said it would scale back borrowing from multilaterals this year from a planned $3 billion to $2 billion, as well as arranging for a portion of this financing – around $400 million – to be issued in local currency bonds. Colombian companies will also be allowed to seek acquisition financing in the domestic market – currently not possible – rather than resorting to external sources. Local exporters have been hit by the continuing rise in the peso, which earlier this month reached its highest level against the US dollar in six years.