Colombia Can’t Do Much More Than Give Signals on Peso: Cardenas

Colombia can’t do much more than “give signals” on the exchange rate, Finance Minister Mauricio Cardenas said today.

“The equilibrium exchange rate isn’t the one we have today, of 1,780 per dollar, but rather 1,950 per dollar, and that’s where we want to steer the exchange rate,” Cardenas told students in Bucaramanga. “We can’t do much more than give these signals, but we believe that the market will respond.”

Cardenas said dollar purchases by the central bank and the treasury, the saving of royalties abroad, and state-controlled oil company Ecopetrol SA issuing debt in pesos rather than dollars, are all signals the government is sending to the market.

To contact the reporter on this story: Oscar Medina in Bogota at omedinacruz@bloomberg.net

To contact the editor responsible for this story: Matthew Bristow at mbristow5@bloomberg.net

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