Colombia: Colombian peso declines to multi-year low in the beginning of August
August 7, 2015
The Colombian peso (COP) has been depreciating rapidly since the second half of May 2015 and hit a multi-year low of 2,925 COP per USD on 5 August. The reading was 10.9% lower than the value tallied on the same day of the previous month and 54.4% weaker compared to the same day of last year.
The peso has followed a largely depreciative trend since the second half of 2014, with the exception of a short but sharp appreciation in the beginning of 2015. This trend results mostly from the persisting low oil prices that are weighing on Colombia’s growth prospects. Indeed, oil account for over 50% of Colombia’s exports and about 20% of the government budget comes from oil revenues. The current all-time lows came on the back of tumbling oil prices as well as important volatility in China’s stock market in recent months.
Author: Eric Denis , Economist