With this background the Colombian currency is the one with the greatest recovery in the world so far this year.
One of the main reasons for this situation is the monetization by the National Treasury, after placement of debt earlier this month (U.S. $ 500 million), according to the report of the entity.
The favorable outlook for economic growth the country is playing for money, following the recent announcement by the Central Bank to raise the rate of growth to 3.5% and 5.5% for year-end.
To this was added the announcement of the ratings S & P changed the outlook for the country’s external debt to positive, the reasons remain positive news in the hydrocarbon sector, the results of Ecopetrol and the corresponding announced able to produce 1.3 million barrels in 2020, factors that are tilting the balance to the side of the revaluation.
The Bank also noted that “the nervousness of the market lower after the release of stress tests and corporate data with positive surprises in the U.S., also influenced the downward movement of the price by increasing the appetite for riskier assets.”
This entity is expected to fund it at the next meeting of the Bank of the Republic, to be held in August with the new finance minister-designate, Juan Carlos Echeverri, the Issuer reactivate its currency intervention mechanism, if the strength of the local currency continues.
Some analysts of major brokerage commission indicate that the Bank of the Republic shall make intervention on the currency before the dollar falls below $ 1,800 levels.