03:20 PM
The Colombian peso did not have its best week. Between June 11 and 14, it suffered a constant fall, positioning itself on Friday as the most devalued emerging currency, with a loss of 3.72%. Analysts attribute this adjustment to what is happening in other countries in the region.
“The devaluation of our currency is a regional adjustment, influenced by nervousness in Mexico with the new Government and in Brazil due to the Government’s uncontrolled expenses. Although the Fiscal Framework presented yesterday has an impact, regional uncertainty weighs more,” Yovanny Conde, co-founder of Finxard, told La República.
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Along the same lines, Sebastián Toro, founder of Arena Alfa, mentioned that dSince the elections in Mexico, a significant deterioration of currencies in the region has been observed, such as in Brazil, Chile and Mexico, along with an increase in the dollar in Colombia, something related to investment risk.
“They are seeing us at great risk again in Colombia due to the fiscal issue, breaking the fiscal rule, the lack of money, and the deficit that this Government is generating. That same feeling is present in Brazil, where they talked about increasing spending, and in Mexico with the new president. All of this has generated a new sense of risk in the region and our currencies have weakened, while the dollar has strengthened.“Toro added.
However, the Colombian peso was not the only one to devalue this week; The Chilean peso also depreciated 1.31%being the second most devalued currency.
It was followed by the Turkish lira with a devaluation of 1.29%, the Polish zloty with -1.23%the Hungarian forint with -1.10% and the Indonesian rupiah, which closed with a depreciation of 0.67%.
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Furthermore, so far this month, The Colombian peso remained the most devalued currency, falling 6.58%followed by the Mexican peso with -4.16% and the Polish zloty with -4.18%.
*With information from La República.
