Nov. 11 (Bloomberg) -- Colombia isn’t considering implementing capital controls to stem gains in the peso, Finance Minister Oscar Ivan Zuluaga said.

“We are not thinking definitely about capital controls,” Zuluaga said in a Bloomberg Television interview today in Tokyo. Short-term inflows “are not a problem in the case of the Colombian economy.”

President Alvaro Uribe last month urged the central bank to find a “solution” to the gains in the peso, which he said have caused exporters to cut jobs as they get less local currency for goods such as flowers and coffee. Brazil’s move last month to impose a tax on foreign stock and bond investments to curb appreciation in the real sparked speculation similar measures would be implemented in Colombia, which last year abolished capital controls that were introduced in 2007.

The peso touched a 14-month high in October and has gained 14 percent against the U.S. dollar this year. It has weakened 6 percent since Zuluaga said Oct. 15 that the government will refrain from selling dollars in the market for the rest of the year, the biggest loss among all currencies tracked by Bloomberg. Policy makers can try to influence exchange rates by buying or selling foreign currency.

The peso rose 0.2 percent to 1,965.45 per dollar when markets closed at 2 p.m. New York time.

“The problem with the Colombian currency is its volatility,” Zuluaga said.

Deposit Requirements

In a bid to stem gains in the peso in 2007, policy makers ordered Colombian companies and investors that took out overseas loans to deposit 40 percent of the funds in the central bank for six months, reducing the incentive to bring in short-term capital. The Finance Ministry that year also imposed deposit requirements on new portfolio investments in the country, including purchases of bonds and stocks.

Zuluaga also said he expects Colombia to overcome a spat with Venezuela, the country’s second-biggest trading partner.

Relations between the two countries have deteriorated after Colombia announced an agreement with the U.S that gives American troops access to seven Colombian bases for anti-drug operations. Venezuelan President Hugo Chavez, who has said the agreement is a direct threat to his country, in July announced he would find alternative sources for imports from Colombia and that trade would fall to “zero.”

“Venezuela is a strategic partner for Colombia,” Zuluaga said. “We have a long tradition in our economic relationship and I expect that we can overcome the political and diplomatic issues.”

Colombian exports to Venezuela plunged 50 percent in September from a year earlier, according to the national statistics agency.

To contact the reporters on this story: Andrea Jaramillo in Bogota at ajaramillo1@bloomberg.net; Bernard Lo in Hong Kong at blo2@bloomberg.net.

Last Updated: November 11, 2009 15:35 EST