Colombia: Colombian peso declines to multi-year low in the beginning of July
July 7, 2015
The Colombian peso (COP) has been depreciating rapidly since the second half of May 2015 and hit a multi-year low of 2,693 COP per USD on 7 July. The reading was 2.7% lower than the value tallied on the same day of the previous month and 45.2% weaker compared to the same day of last year.
Despite a significant but temporary appreciation in the beginning of 2015, the peso has followed a largely depreciative trend since the second half of 2014. This trend reflects that the low oil price is weighing on Colombia’s growth prospects. Oil accounts for the largest portion of the country’s exports as well as for a notable part of government revenues. Oil prices tumbled again in the recent months, and mounting concerns over the Greece crisis and China’s stock turmoil damaged global economic confidence, leading to the current all-time lows.
Author: Eric Denis , Economist