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Colombia weighs costs of 'sterilizing' dollars

Monday, August 20, 2012

The Colombian central bank weighs the costs of “sterilizing” its purchases of dollars when formulating its policy of reserve accumulation, central bank chief José Dario Uribe said.

“The accumulation of reserves always starts from a careful analysis of the costs and the benefits, and of the opportunity costs, being responsible with the country, and taking into account that sterilizing reserve accumulation costs about 9 billion pesos ($4.9 million) for every $100 million bought,” Uribe wrote in a paper published on the central bank’s website.

Colombia’s peso fell for an eighth day on Friday, its longest losing streak since August 2008, on speculation officials will step up intervention to weaken the currency.

Source: Bloomberg