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Colombian currency surge could spook investors

Wednesday, July 4, 2012

Colombia's trade minister urged the country's Central Bank not to raise interest rates and to purchase more US dollars to mitigate the negative effects of the Colombian peso's revaluation.

Minister Sergio Diaz-Granados spoke at a meeting with hundreds of American business representatives in New York at a conference aimed at increasing foreign investment in Colombia following the free trade agreement between the two countries that went into effect May 15.

Diaz-Granados feared that potential foreign investors would be scared off by the recent revaluation, leading him to suggest purchasing US dollars as a safety measure to ensure economic stability.

Source: Colombia Reports