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Colombia's central bank mops up $380 million

Tuesday, July 10, 2012

The Colombian central bank purchased $380 million in June in the spot market, a move designed to drain U.S. currency from the foreign-exchange market and build up its international reserves.

The central bank has pledged to buy a minimum of $20 million daily in the spot market in a bid to tame the peso's surge against the dollar. So far this year it has purchased $1.96 billion.

The central bank used a similar strategy in 2011, when it purchased $3.72 billion until October, when it ended its policy of daily purchases.

Source: Wall Street Journal