Colombia Government Adds to Dollar Holdings, Pressuring the Peso

Colombia’s finance ministry has stepped up dollar purchases in the spot market since Friday, after the peso hit is strongest level in almost five years.

Authorities bought around $250 million on Friday and $410 million on Monday, said Gilberto Hernandez-Gomez, a strategist at BBVA in New York, matching estimates by local traders. The move is in line with a government strategy to prioritize cash holdings in foreign currencies, a plan outlined by public credit director Javier Cuellar in an interview published Tuesday with local outlet Valora Analitk.