Colombia’s peso posted the biggest weekly drop in Latin America as the government prepares a stimulus plan that Finance Minister Mauricio Cardenas has said includes measures to weaken the currency.
The peso fell 0.4 percent to 1,826.10 per U.S. dollar this week, the steepest drop among the six most-traded Latin American currencies tracked by Bloomberg. It weakened 0.1 percent at the close today Bogota. The currency has weakened 3.2 percent this year after strengthening 9.7 percent in 2012.
President Juan Manuel Santos is scheduled to present a plan on April 15 to boost the Andean nation’s industrial and agricultural industries, including additional currency measures, Cardenas said last week. Cardenas told lawmakers April 2 that he expects the peso to weaken to 1,900 and wants to “get there quickly.”
“Everything is rooted in what the government could do next week,” said Daniel Escobar, head analyst at Global Securities brokerage in Bogota. “They haven’t been specific about what measures they could take, and the market has left the door open for the announcements they could make.”
Yields on the government’s peso bonds maturing in 2024 rose two basis points, or 0.02 percentage point, to 5 percent today, according to the central bank.
To contact the reporter on this story: Christine Jenkins in Bogota at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com