Colombia: Colombian peso depreciates to multi-year low on weak oil price
March 12, 2015
The Colombian peso (COP) depreciated against the U.S. dollar in March, continuing the trend that has remained in place since July of last year. On 9 March, the currency traded at 2,608 COP per USD; the peso had not fallen to greater than 2,600 COP per USD since 2009. This was 10.2% weaker than the level recorded on the same day in February. In annual terms, the Colombian peso lost 28.0% against the U.S. dollar. In the following days, the peso continued to depreciate and traded at 2,625 COP per USD on 12 March.
The Colombian peso weakened against the U.S. dollar as the weak oil price weighs on the net oil exporters’ growth prospects. Oil accounts for the largest portion of the country’s exports and for a notable part of government revenues. In addition, the oil sector has been Colombia’s main receiver of foreign investment and the slowdown in investment that came along with the weaker oil price contributed to the weakening of the peso.