Presidents Obama and Santos announce "Peace Colombia"

Last week, Colombian President Juan Manuel Santos traveled to Washington, DC, to meet with U.S. President Barack Obama. President Obama announced on Thursday that he would ask the U.S. Congress for upwards of $450 million to invest in Colombia’s post-conflict. According to Reuters, the money would be used both on fighting drug trafficking and on reintegrating ex-FARC combatants back into Colombian society. President Obama also promised to encourage additional donations from other countries around the world.

President Santos formally thanked the United States for investing $10 billion over fifteen years in “Plan Colombia,” and revealed that the new “Peace Colombia” plan would mean a 25% increase in funding for Colombia over 2015%. President Obama stressed that the United States would not abandon Colombia in the post-conflict, affirming, “Just as the United States has been Colombia's partner in a time of war, I indicated to President Santos we will be your partner in waging peace.”

In oil-related news, Colombia’s Constitutional Court suspended oil activities in the municipality of Orito in Colombia’s Putumayo department because there had been no prior consultation of the indigenous communities living in the area, and because the oil exploitation is damaging the environment.

Lastly, in macroeconomic news, the value of the Colombian peso rose last week, paralleling a rise in oil prices, though the Colombian Central Bank warned that the country’s currency is actually still overvalued, according to the Bank’s economic models. Inflation in Colombia also climbed to 7.45% in January over the previous year, the quickest rise in inflation since 2008. The Colombian Central Bank explained that inflation should slow by the end of the year to 4 or 5% once the impact of the changing weather lessens.