Colombia’s central bank said it will start a three-month program of dollar purchases after the peso strengthened to a five-month high today.
Banco de la Republica will buy $20 million a day in auctions for three months starting from Feb. 6 to boost the Andean nation’s levels of international reserves, according to a statement published today on its website.
The peso appreciated 0.5 percent to 1,784.50 per U.S. dollar, marking a fifth straight week of gains. It has advanced 8.6 percent this year.
The central bank ended a year-long daily dollar purchase program on Sept. 30 after European debt turmoil led investors to dump emerging-market assets.
The yield on the government’s 10 percent peso bonds due July 2024 rose two basis points, or 0.02 percentage point, to 7.36 percent, according to the central bank. The bond’s price fell 0.223 centavo to 120.9920 centavos per peso.