© Reuters. FILE PHOTO: Colombian Finance Minister Jose Antonio Ocampo speaks throughout an interview with Reuters in Bogota, Colombia August 2, 2022. REUTERS/Vannessa Jimenez
BOGOTA (Reuters) – Colombian Finance Minister Jose Antonio Ocampo has requested the nation’s central financial institution to debate liquidity in futures markets in its month-to-month assembly this Friday, he stated on Wednesday, at a time when native forex and public debt are experiencing turbulence from home uncertainty.
On Monday Colombia’s peso hit file lows, having depreciated 25.3% throughout the yr amid a disaster of confidence brought on by feedback from President Gustavo Petro relating to sure financial insurance policies together with a proposed tax reform, the prohibition of recent oil exploration and strategies of capital controls.
Although the forex noticed a correction on Wednesday, ending up 1.83% at 4,884.06 versus the greenback, analysts say native liquidity has fallen amid world financial uncertainty.
“There is a matter that I’ve requested the (central) financial institution for us to debate on Friday about futures markets, about how liquid or not these futures markets are,” Ocampo advised reporters.
In 2020, throughout the worst of the coronavirus pandemic, Colombia’s central financial institution took extraordinary measures to spice up liquidity, resembling international trade hedging by way of auctions for the sale of {dollars} by means of ahead operations, or “swaps.”
Ocampo, who sits on the financial institution’s seven-member board, dominated out instantly intervening within the international trade market by promoting {dollars} from worldwide reserves to comprise the depreciation of the peso as Chile did just lately.
In a latest Reuters ballot, 12 out of 14 analysts forecast the central financial institution will elevate its benchmark rate of interest by 100 foundation factors to 11% on Friday. One of many analysts projected a hike of 75 foundation factors and one other forecast a rise of fifty foundation factors.
