With all the war talk (which way will the $$ Peso $$ go tomorrow ? )

DodgerDogs says on Mar 2, 2008, 17:59:

Our lives begin to end the day we become silent about things that matter.Martin Luther King:

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DodgerDogs says on Mar 2, 2008, 18:01:

Our lives begin to end the day we become silent about things that matter.Martin Luther King:

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BillBigD says on Mar 2, 2008, 18:18:

I'm guessing that means Down!!!! HA HA

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Lisa Zee says on Mar 2, 2008, 23:03:

I think it is not legal to print money!

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DodgerDogs says on Mar 2, 2008, 23:24:

Then do not print these pictures.

Our lives begin to end the day we become silent about things that matter.Martin Luther King:

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darkangel305 says on Mar 3, 2008, 06:16:

I think it is not legal to scan money!

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rocinante says on Mar 3, 2008, 06:20:

Peso gets support for a few days. How could it not?

"World economic indicators point to a democrat winning 2008. It will surely be Obama. Peso 1400 by November" Feb 5, 2008

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untreated says on Mar 3, 2008, 07:22:

I bought 200 dollars on Friday at 1920. People selling dollars got 1800.
Dollars, 18 kt gold and Colombian common stocks, best investment values.

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rocinante says on Mar 3, 2008, 07:28:

on that note...

"World economic indicators point to a democrat winning 2008. It will surely be Obama. Peso 1400 by November" Feb 5, 2008

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ColombianoGringo says on Mar 3, 2008, 08:36:

It was around 1839 this morning when I looked and now it is at 1849.

http://www.xe.com/ucc/convert.cgi?template=crm1&Amount=1.00&From=USD&T...

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RAAAY says on Mar 3, 2008, 08:53:

One would think that this little period of uncertainty would result in a flight out of the Peso......................at least until it is no longer a news issue...........

.........Its useless to argue with ignorance

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jh816 says on Mar 3, 2008, 10:03:

Besides the risk of war, check the inflation numbers. 1.5% for the month of Feb. alone? Between January and Feb. inflation has already eaten half of the target set by the central bank. The peso will not be nearly as strong over the next year as many on the board believe. Strongest it will go is 1800.

Things could get tough if the government can't figure out how to stem inflation.

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wendell13 says on Mar 3, 2008, 12:37:

I believe last year's inflation was almost 6 %. You're right... It is certainly going to go much higher. This is going to be very interesting to see how this unfolds

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robi666 says on Mar 3, 2008, 12:49:

The Colombian central bank should have stopped raising interest rate to fight inflation many months ago.
This does not work for a third world country with a 6-7% yearly growth. It will just attract more foreign capitals, make peso stronger and nothing else.

You simply CANNOT fight inflation in a booming economy of a poor country. Get used to it and, if you live or plan to live here, cover your ass with Colombian assets.

Something like two and half years ago, I was talking to a realtor in Medellin, who was worried about the raising of real estate prices and because everyone was talking about an imminent crise. I told him that the only problem was going to be inflation and Colombians had to get used to it. And i told him that real estate price were going to the stars in the next years.
After all this time, he still remembers and tell me about it everytime we meet.

"I am a citizen of the most beautiful nation on earth. A nation whose laws are harsh yet simple, a nation that never cheats, which is immense and without borders, where life is lived in the present."

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DodgerDogs says on Mar 3, 2008, 13:22:

Bad News:::::

Colombia's Peso Little Changed, Border Dispute Concerns Ease

By Andrea Jaramillo

March 3 (Bloomberg) -- Colombia's peso was little changed on easing concern a rift with Ecuador and Venezuela will hurt trade with the neighboring nations and as Fitch Ratings affirmed its outlook on Colombia's debt.

Ties with Ecuador and Venezuela soured after Colombia carried out a March 1 air strike on a rebel camp in Ecuadorian territory, killing Raul Reyes, the reputed second in command of the Revolutionary Armed Forces of Colombia, along with at least 12 other rebels.

``There's a tense calm in markets,'' said Alvaro Camaro, chief analyst at Stanford Financial Group's unit in Bogota. ``Colombia is facing a diplomatic and political crisis but investors are thinking markets overreacted earlier today and things might not escalate to closing trade for example.''

The peso was little changed at 1,838.25 per dollar at 3:18 p.m. in New York, according to the Colombian foreign-exchange electronic transactions system, known as SET-FX.

``Trade links between Colombia and Venezuela are strong, which mitigates the risk of military action,'' Shelly Shetty, a sovereign ratings director at Fitch Ratings said in a report today. ``Heightened diplomatic tensions between Colombia, Venezuela, and Ecuador are unlikely to put downward pressure on Colombia's sovereign ratings in the near term.''

Fitch rates Colombia's debt BB , the highest non-investment grade, with a stable outlook.

Venezuelan Battalions

Colombia's peso declined as much as 1.7 percent today as Venezuelan President Hugo Chavez sent 10 armored battalions to the border and closed his Bogota embassy, saying Colombia's raid in Ecuadorian territory risks a regional war. Ecuador's President Rafael Correa said last night in a nationwide television address that he had ``ordered the mobilization of troops on the northern border'' with Colombia.

The raid occurred 1.8 kilometers (1.1 miles) inside Ecuador. Colombia's Foreign Minister Fernando Araujo apologized for the incursion, saying his government was responding to rebel attacks. Colombia also said in a statement today that it wouldn't move troops to its southern border with Ecuador and eastern border with Venezuela.

Correa said he wouldn't accept the apology and withdrew Ecuador's ambassador from the nation's northern neighbor and expelled his Colombian counterpart. Venezuela is Colombia's second-biggest trade partner, while Ecuador is the second- biggest within South America.

Colombia's benchmark stock index declined the most since Feb. 6, paced by fabric exporters. The IGBC index fell 2.4 percent to 8,969.43, making it Latin America's worst performing major market.

Colombian Bonds

The yield on Colombia's benchmark 11 percent bond due July 2020 rose 2 basis points, or 0.02 percentage point, to 11.58 percent, according to Colombia's stock exchange. The price touched 95.142 centavos, its lowest since the security was issued in July 2005.

Colombia's bonds also fell following a March 1 report showing inflation quickened more than the Bloomberg median estimate of 26 economists forecast last month.

``Besides the conflict, which is leading markets lower, bonds are reacting to expectations the central bank may need to raise rates further to rein in inflation,'' said Alexander Cardenas, chief analyst at Bogota-based Acciones y Valores brokerage.

Consumer prices rose 1.51 percent in February from the previous month, led by an increase in costs for education and food, the state statistics agency said in a March 1 report. That was above the 1.12 percent median forecast in a Bloomberg survey of 29 economists.

Colombia's central bank on Feb. 22 raised its key lending rate a quarter-percentage point to 9.75 percent in a bid to stem inflation. Annual inflation quickened to 6.35 percent in February, above the central bank's 3.5 percent to 4.5 percent target.

Our lives begin to end the day we become silent about things that matter.Martin Luther King:

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rocinante says on Mar 3, 2008, 16:28:

I've got Ray on ignore so I dont'know if he's in this thread but...

'You simply CANNOT fight inflation in a booming economy of a poor country. Get used to it and, if you live or plan to live here, cover your ass with Colombian assets." Robbi

is the only thing in this thread that has a shred of intelligence including my posts.

Big business doesn't lie - this skirmish over the weekend after Reyes woke up with a bomb exploding in his bed is looking to be no big deal from an economic standpoint. Of course the sesnationalists will have none of it.

"World economic indicators point to a democrat winning 2008. It will surely be Obama. Peso 1400 by November" Feb 5, 2008

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rocinante says on Mar 3, 2008, 16:30:

In essence: "With all the war talk (which way will the $$ Peso $$ go tomorrow ? )"

All the war talk is nothing more than some hot air. We'll see what the economies do these coming weeks

"World economic indicators point to a democrat winning 2008. It will surely be Obama. Peso 1400 by November" Feb 5, 2008

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jh816 says on Mar 3, 2008, 17:45:

I don't except the argument that high inflation is a "natural' part of a developing nation's economics. Prices follow supply and demand. Yes, in a booming economy inflation will be higher, but it does not have to be 6% and upwards.

The problem with Colombia is two-fold. While the private sector has been booming, the government sector has continued to overspend, contributing to a huge increase in demand. Because of protective government tariffs and regulations, colombian companies have never really had to increase productivity. They have increased output, but can only increase it to a point because of poor productivity. Then again, it is so expensive for importers to pay the sky high duties that they don't have to compete much. Sure, supply has increased in the past few years, but not nearly enough to keep up with demand.

Not enough supply for an increasing demand= higher prices.
How about lowering the 81% import tariff Colombia has on rice or the 18% tariff on dairy?

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Ctg Bound says on Mar 4, 2008, 05:32:

jh816,

MOST import duties to Colombia are in the 15-20% range, not very excessive by international standards.

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rocinante says on Mar 4, 2008, 05:35:

I don't like to post rates middday but due to the nature of this post and in light of recent events I just want to say:

Peso at 1825 as of 10 minutes ago. Up 12.95

"World economic indicators point to a democrat winning 2008. It will surely be Obama. Peso 1400 by November" Feb 5, 2008

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robi666 says on Mar 4, 2008, 05:56:

That's right Ctg, and also, the public debt is on a good level by international standards.

"I am a citizen of the most beautiful nation on earth. A nation whose laws are harsh yet simple, a nation that never cheats, which is immense and without borders, where life is lived in the present."

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CatGirl says on Mar 4, 2008, 06:13:

Roci - Thanks for the update ;)

Love and Time: the only two things that cannot be bought, but only spent

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tejasmarcos says on Mar 4, 2008, 07:19:

the dollar is so easy to copy. it looks perfect up above. no wonder more people counterfeit our currency more than any other in the world. look how easy it is.............. the people at the treasury are brilliant..........

trying to walk a straight line on sour mash and cheap wine...

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jonas says on Mar 4, 2008, 10:33:

Dollar seems pretty oversold against the major currencies like Euro, Yen etc. It might rebound a little soon, but will that affect the exchange rate to the COP? Let´s just hope so.

What I have, I do not want to lose, but Where I am I do not want to stay, but those I love, I do not want to leave, but those I know I no longer want to see, but Where I die, I do not want to go;I want to stay where I have never been

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