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14 month high for COL PESO

By Drew Benson
Oct. 13 (Bloomberg) -- Colombia’s peso climbed to the
strongest level in 14 months as foreign investors brought in
dollars in search of higher-yielding assets.
The peso rose 1.2 percent to 1,825.68 per U.S. dollar at
1:46 p.m. New York time, from 1,846.42 on Oct. 9. Markets were
closed in Colombia, Argentina and Chile yesterday for a national
holiday. The currency touched 1,818.1 per dollar, its strongest
since Aug. 11, 2008.
“Foreign funds are entering after the long weekend,” said
Alexander Cardenas, chief analyst at Acciones y Valores, a
Bogota-based brokerage. “Investing in Colombia is a good
alternative since the yields are high, while the economy has
come out of recession faster than expected.”
Colombia is planning an international benchmark bond sale
for notes that mature in 2041, said a Finance Ministry spokesman
who declined to be identified in accordance with government
policy.
Goldman Sachs Group Inc. and Bank of America Corp. are
arranging the sale, which will be benchmark in size, according
to a person familiar with the transaction who declined to be
identified because terms aren’t set. Benchmark typically means
at least $500 million.
The peso may advance further on “expectations the
government will bring the money raised into the country,”
Cardenas said.

‘A Political Issue’

Finance Minister Oscar Ivan Zuluaga said yesterday Colombia
may sell dollar-denominated bonds by the end of the year,
depending on its financing needs for 2010. Last week, Zuluaga
said the peso’s climb is a concern. The currency has jumped 31
percent during the past six months, making it the best performer
against the dollar among 26 emerging-market currencies tracked
by Bloomberg.
“The appreciation of the Colombian peso since March has
been very significant and is turning into a political issue,”
wrote Goldman Sachs analyst Alberto Ramos in a report today from
New York. “If the Colombian peso continues under pressure to
appreciate we do not rule out discretionary spot market
interventions by the central bank.”
The yield on Colombia’s 11 percent bonds due in July 2020
fell one basis point, or 0.01 percentage point, to 8.75 percent.
The bond’s price rose 0.033 centavo to 115.222 centavos per
peso, according to Colombia’s stock exchange.
Argentina’s peso rose 0.2 percent to 3.8232 per dollar,
from 3.8288 on Oct. 9. The yield on Argentina’s inflation-linked
peso bonds due in December 2033 rose 27 basis points to 12.21
percent, according to Citigroup Inc.’s local unit.
Chile’s peso dropped 0.1 percent to 554.65 per dollar from
554.5 on Oct. 9. The yield for a basket of Chile’s 10-year peso
bonds in inflation-linked currency units, called unidades de
fomento, climbed five basis points to 2.82 percent, according to
Bloomberg composite prices.

By BillBigD on Oct 13, 2009, 11:12 in Friendly Talkzone.

Simon says on Oct 13, 2009, 12:18:

GOOOOOO PESOOOOO!!!!!!!!!!!!!!

UP, UP, AND AWAY!!!!!

"Just an honest, decent Colombian trying to do the right thing."--Simon

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el norteño (☼Travelguide writer) says on Oct 13, 2009, 12:34:

Simon, a strong peso kills the Colombian export sector. I know someone who works in the flower business in Cundinamarca. The strong peso is very bad for them.

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Simon says on Oct 13, 2009, 12:35:

Yes, but it helps the Colombian import sector.

"Just an honest, decent Colombian trying to do the right thing."--Simon

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Papi de Alejo says on Oct 13, 2009, 12:45:

But you are only favoring other countries that way. If Colombia can't export; income and jobs are lost. Colombian jobs. When you favor imports, your are sending the robust peso to other countries where their citizens can work more and keep their jobs; all at the expense of Colombian workers.

Live simply... Love generously... Care deeply... Speak kindly...

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Aji1 says on Oct 13, 2009, 12:48:

Save your breath, won't listen

I know not what course others may take; but as for me, give me liberty or give me death!

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wendell13 says on Oct 13, 2009, 13:37:

I am Colombian but I live in the US. Everything is the best in Colombia but I don't have the balls to live there. I can't figure out something, though. My girlfriend with 3 kids in Colombia complains that she is not receiving as many pesos as before when she changes the dollars that I send her every month. Why is that? I guess I shouldn't have skipped so many math classes.

I am also an internet bully. I say things on forums that I wouldn't dare say to people in person. But I love my Colombia so much. It is just that I can't stand living there. It is much easier extolling the virtues of Colombia by living in the US. Live in Colombia?? Are you crazy?

Donde estan los verdaderos colombianos??? Viven in estados unidos como yo.

Go peso!!!! Up, up and away.

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Aji1 says on Oct 13, 2009, 13:43:

Wendell, if the peso keeps going up will mean those dollars you are sending will be worth less and less. I guess you still have not done the math :)) Why not live in Colombia yourself? There are plenty of gringos on this forum that live there. Even more if you count all the gringos that got sick of this forum, hehe.

I know not what course others may take; but as for me, give me liberty or give me death!

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Papi de Alejo says on Oct 13, 2009, 13:47:

If you send your girlfriend $100 dollars every week, she's hurting right now. A few weeks ago, she would have received around 200,000 pesos but right now she should be receiving only 185,000 pesos more or less. As the peso gets stronger against the dollar, she will receive less. As the dollar gets stronger against the peso, she will receive more.

If you girlfriend is importing goods, a stronger peso works for her as long as she has customers to buy her products. If she relies on your remittances, she is in for some hurt and saying "Go peso" is your encouragement of her hurt.

Live simply... Love generously... Care deeply... Speak kindly...

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Simon says on Oct 13, 2009, 14:16:

I see there's a new snake it the garden. Better go get the machete to chop its head off.

"Just an honest, decent Colombian trying to do the right thing."--Simon

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dguittar says on Oct 13, 2009, 14:26:

Why are you picking on snakes>?

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scumbuster says on Oct 13, 2009, 14:57:

Back around March you were getting 260,000 pesos for $100 and today 182,400

Tomas Jefferson “When the people fear their government, there is tyranny; when the government fears the people, there is liberty.”

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La_Huella says on Oct 13, 2009, 15:54:

How about let people in Colombia fend for themselves??? Plenty of people survive here without receiving the mighty USD. Gimme a break.. why can't somebody send ME some money... I could say "te extraño mi amor" as well as anybody else could....

And the Colombian economy is NOT just exporting flowers.

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Platinum_space says on Oct 13, 2009, 17:50:

Lots of flowers in Miami

I roll solo, other countries crimes do not intimidate me.

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spigrimace says on Oct 14, 2009, 03:36:

Looks like Colombia´s Banco de le Republica is starting to intervene today.

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bam m says on Oct 14, 2009, 06:49:

P A R T ......Y -not

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El Expatriado says on Oct 14, 2009, 14:13:

Maybe it`ll force someof those 65 year old monger perverts living on fixed income out.

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kenblanquito says on Oct 14, 2009, 15:00:

14 month high for Peso vs Dollar.
What about the poor old Brit Pound? Today at 2970; the lowest I can recall this decade and in February 2007 it was sitting at about 4700-4800. We are suffering more!

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El Expatriado says on Oct 14, 2009, 15:02:

Bailout more banks and see your currencies go to 0.

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kenblanquito says on Oct 14, 2009, 16:02:

Brians
Perhaps when the Bank of England increases its base rate from 0.5%, it will stimulate some investment and its position against other currencies may improve again.
A person that I know in the UK acquired an interest-only mortgage about 18 months ago, and is paying only 0.5%! Lucky boy! Makes it even better as it was a "mortgage to rent" so he is doing very well as only 10% of his income is eroded by repayments!

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scumbuster says on Oct 15, 2009, 03:17:

Brians says on Oct 14, 2009, 15:14: flag

Pound Sterling is the only currency more badly positioned than the dollar. I don't know what will save it longer term. Short term what you need is some Isral fighters bombing some nuke facilities in Iran. That would give a nice bounce to dollar and the sterling
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I do think Isral will eventually take that aproach. Unfortunatly more than any gain made would be spent on $250 barrel oil. Gasoline at $8 to $10 a gallon.
I would be willing to bet Russia never goes along with santions. Russia wants a military strike. The low oil prices are killing there economy.

Tomas Jefferson “When the people fear their government, there is tyranny; when the government fears the people, there is liberty.”

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