Wednesday, April 6, 2016

Colombian peso's rally falls apart

The Colombian peso, which had climbed to a four-month high past the 3,000 COP : 1 USD, fell back to earth on Monday, when it weakened to 3,068 per dollar. Bloomberg explained that the peso’s rally was driven by a climb in oil prices, which dropped upon news that Saudi Arabia would only freeze its oil production if rival Iran did the same.

In related news, Ecuadorean president Rafael Correa told the press that oil officials from Colombia, Ecuador, Mexico, and Venezuela will meet on Friday to discuss freezing oil production and any other tools the countries might be able to use to raise oil prices. Correa noted that the meeting was originally supposed to take place in March, but was postponed due to scheduling difficulties. Ecuador’s goal is to win support for a proposal in advance of OPEC’s next meeting on April 17.


The Colombian weekly Semana wrote about the terrible effects that the global oil crisis has had on the four leading lights of Latin America’s oil industry, state-owned oil companies Petrobras, Pdvsa, Pemex, and Ecopetrol. The article explained that after enjoying several decades of exuberant growth, the oil companies are now experiencing great difficulties, which have also affected the finances of their respective national governments.

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