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31 Mar 2015
FX intervention in COP almost ruled out – Scotiabank
FXStreet (Edinburgh) - Eduardo Suarez, Senior Currency Strategist at Scotiabank, believes the central bank of Colombia will refrain from intervening in the FX markets.
Key Quotes
“In an interview in Tokyo earlier today, FinMin Cardenas said that while intervention is always an alternative, it is not an option being considered at the moment”.
“FinMin Cardenas described the decline of the COP as something that should have been expected given the fall in oil prices, and seemed to reiterate that at least for now, the peso will be continued to allow to float freely”.
“On the inflation front, Cardenas said most of the pass‐through from the COP’s decline is expected to have already materialized, and that they expect inflation to converge to about 4% by year end (from about 4.3% currently)”.
“On the debt side, Cardenas said it is possible that the country could do some pre‐financing of its 2016 needs later in the year (he suggested that is an H2 event)”.
Key Quotes
“In an interview in Tokyo earlier today, FinMin Cardenas said that while intervention is always an alternative, it is not an option being considered at the moment”.
“FinMin Cardenas described the decline of the COP as something that should have been expected given the fall in oil prices, and seemed to reiterate that at least for now, the peso will be continued to allow to float freely”.
“On the inflation front, Cardenas said most of the pass‐through from the COP’s decline is expected to have already materialized, and that they expect inflation to converge to about 4% by year end (from about 4.3% currently)”.
“On the debt side, Cardenas said it is possible that the country could do some pre‐financing of its 2016 needs later in the year (he suggested that is an H2 event)”.