Colombia: Colombian peso tumbles following oil price slump
February 11, 2016
The Colombian peso (COP) has been depreciating rapidly since the second half of May 2015. It reached an all-time low of 3,441 COP per USD on 11 February, which represented a 5.4% depreciation over the value tallied on the same day of the previous month and was 41.9% weaker compared to the same day of last year. Following its all-time low, the currency has regained some ground and was trading below but close to 3,400 COP per USD.
Despite a new hike by the Central Bank (BanRep), the steady fall in oil prices, which are weighing on Colombia’s growth prospects, kept pushing the currency down. Indeed, oil accounts for around 40% of Colombia’s exports and about 20% of the government budget comes from oil revenues.
Author: Eric Denis , Economist