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Colombian Markets Focusing on
Re-election Ruling
The Colombian Constitutional
Court ruling on the presidential
re-election, expected in coming
months, has attracted the
attention of financial market
given possible substantial
exchange rate shifts.
Analysts said tensions have
increased as the date of the
ruling approached, amid
speculation to benefit from
predictions of large
fluctuations in the USD exchange
rate.
The dollar is expected to
maintain a downward trend in
relation to the Colombian peso,
if the decision supports a
presidential re-election.
However, a negative result will
lead to a high for the
dollar-Colombian peso exchange
rate and a rise in the amount of
duties the country will have to
pay foreign creditors.
Experts stated the government
has purchased dollars on the
market and reduced the foreign
debt to protect itself from
dollar exchange rate increases.
Treasury Ministry officials
suggested people and businesses
emulate the government to avoid
the impact of appreciation in
the value of the dollar.
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