Colombia Plans Mexico-Style Oil Hedge After Recent Volatility

Colombia is planning to hedge its oil exports to protect the government from the violent swings in revenue it suffered in recent years.

The financing bill to be presented to Congress Wednesday proposes the creation of a fund that can buy derivatives from “foreign entities specialized in operations of this type”, according to a copy of the bill seen by Bloomberg. The bill needs to be passed by Congress to become law, and would take effect on Jan. 1.