BOGOTA May 13 Colombia's treasury plans to buy
dollars in the foreign exchange market to limit the strength of
the peso, Finance Minister Mauricio Cardenas said on Tuesday.
"Priority: competitive dollar for the benefit of the
country. Treasury to resume purchase of dollars as it deems
necessary," Cardenas wrote on Twitter.
The peso weakened 0.47 percent against the dollar
on Monday after the treasury bought dollars on the local market
and it softened a further 0.32 percent in trade early on Tuesday
to 1,919.65 per dollar.
Cardenas suggested last week that the government could begin
making dollar purchases on top of up to $1 billion the central
bank is buying from April to the end of June, to compound
efforts to weaken the peso.
The peso has rallied 6 percent since mid-March when
investment bank J.P. Morgan announced it would raise the
weighting of Colombian bonds in its indexes, a decision which
analysts believe could draw between $4 billion and $10 billion
of foreign cash into the country's financial markets over the
(Reporting by Nelson Bocanegra; Writing by Peter Murphy;
Editing by Chizu Nomiyama)