Capping Colombia's second-biggest currency rally is the strategy behind the nation's central bank of considering the acquisition of twice as much in U.S. dollars, a central bank leader told Bloomberg.
Co-director Cesar Vallejo said during a Monday interview that policy makers with the financial institution also are thinking of extending daily purchases' current phase for the world's reserve currency beyond November, when the program is projected to close. He said the $20 million purchase might push to $40 million and it might run through the end of December or even February of next year.
"Until now we hadn’t heard anything this concrete from any board member other than the finance minister," head analyst Camila Estrada with Helm Bank told Bloomberg, noting his commentary very strongly suggests increased purchasing of the greenback is afoot.
The peso has advanced roughly 7.7 percent against the U.S. dollar thus far this year, trailing only the currency of Chile for the 170 monetary units that Bloomberg is tracking. Colombia's oil and mining industries are attracting international investment.
Colombia this week will purchase more than $300 million-worth on the foreign exchange market as a strategy of capping the peso's gains against the dollar, according to Reuters.