Colombia’s central bank, Banco de la República, announced on July 31 a program to accumulate international reserves of up to $4 billion to curb the peso’s appreciation, which has risen nearly 20% against the dollar in 2026. The bank held interest rates steady despite inflation above 6%, choosing to buy dollars rather than attract more foreign capital through rate hikes. Export sectors in coffee, flowers, and bananas, which invoice in dollars but pay employees in pesos, are directly experiencing margin compression. The first auctions will begin on August 3, and the program size is calibrated to have a real impact on the foreign exchange market.
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