http://www.forexconspiracyreport.com/trading-the-colombian-peso/ Trading the Colombian Peso 2015 In 2012 the Colombian peso out distanced all other currencies versus the US dollar. Now trading the Colombian peso has to do with anticipating when the currency will hit bottom versus the dollar and when the price of crude oil will come back up. In December Bloomberg reported that the peso leads global losses due to the massive fall in oil prices. Colombia’s peso fell to a five-year low and led losses among world currencies as the price of crude oil, the Andean nation’s biggest export, sank to a five-year low. The peso sank 2 percent to 2,396.69 per dollar at the close in Bogota, the weakest since April 2009. The drop was the biggest among 31 major currencies tracked by Bloomberg. The peso has tumbled 12 percent in the past month. That was when Brent crude fell below $65 a barrel. Today Brent crude contracts for March 2015 trade at $56.09 a barrel and one dollar buys you 2,406.5 Colombian pesos. The last months have been active for those trading the Colombian peso. What does the future hold? A Weaker Peso Favors Colombian Exports Crude oil is priced in US dollars. But items manufactured or grown in Colombia are denominated in now-weaker pesos and sell more cheaply in world markets. Reuters reports the Colombian finance minister saying he is comfortable with the weakened peso! Colombian Finance Minister Mauricio Cardenas said on Thursday that the peso, which has lost a fifth of its value against the U.S. dollar in 12 months, was trading at an “adequate” level, one that will boost local manufacturing. “The dollar’s current level is one we consider adequate. It seems to us it is a level that will enable many Colombian companies not only to export, but also very importantly, Colombians will start to favor national products because imports will become very expensive,” he said. For the time being the Colombian central bank is not taking any measures to raise the value of the peso such as buying pesos with their dollar reserves. And, the price of oil has fluctuated before taking the Colombian peso with it. Thus it can be expected that when oil starts to recover so will the peso. Raising Taxes to Balance the Budget Colombia’s current budget was based on the assumption of $100 a barrel oil. As oil revenue has fallen so have tax revenues. The nation has to increase taxes to cover expenses. The Bogota Post analyzes how the Colombian peso is hit hard by the fall in oil. This situation causes a number of problems. Firstly, the dramatic drop in the price of oil means that Colombia’s original 2015 budget is no longer worth the paper it was written on. The country made assumptions on earnings based on a price of oil which no longer applies. This has been adjusted for by raising taxes to plug the budget deficit, but analysts are already saying a further tax hike may be necessary if the price of oil continues to

1. Trading the Colombian Peso 2015
By www.ForexConspiracyReport.com

2. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
In 2012 the Colombian peso out
distanced all other currencies versus
the US dollar.

3. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
Now trading the Colombian peso has
to do with anticipating when the
currency will hit bottom versus the
dollar and when the price of crude oil
will come back up.

4. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
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Before We Continue…

5. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
In December Bloomberg reported that
the peso leads global losses due to
the massive fall in oil prices.

6. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
Colombia’s peso fell to a five-year low
and led losses among world
currencies as the price of crude oil,
the Andean nation’s biggest export,
sank to a five-year low.

7. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
The peso sank 2 percent to 2,396.69
per dollar at the close in Bogota, the
weakest since April 2009.

8. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
The drop was the biggest among 31
major currencies tracked by
Bloomberg.

9. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
The peso has tumbled 12 percent in
the past month.

10. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
That was when Brent crude fell below
$65 a barrel.

11. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
Today Brent crude contracts for March
2015 trade at $56.09 a barrel and one
dollar buys you 2,406.5 Colombian
pesos.

12. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
The last months have been active for
those trading the Colombian peso.
What does the future hold?

13. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
A Weaker Peso Favors
Colombian Exports

14. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
Crude oil is priced in US dollars. But
items manufactured or grown in
Colombia are denominated in now-
weaker pesos and sell more cheaply
in world markets.

15. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
Reuters reports the Colombian
finance minister saying he is
comfortable with the weakened peso!

16. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
Colombian Finance Minister Mauricio
Cardenas said on Thursday that the
peso, which has lost a fifth of its value
against the U.S. dollar in 12 months

17. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
Was trading at an “adequate” level,
one that will boost local
manufacturing.

18. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
“The dollar’s current level is one we
consider adequate.

19. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
It seems to us it is a level that will
enable many Colombian companies
not only to export

20. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
But also very importantly, Colombians
will start to favor national products
because imports will become very
expensive,” he said.

21. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
For the time being the Colombian
central bank is not taking any
measures to raise the value of the
peso such as buying pesos with their
dollar reserves.

22. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
And, the price of oil has fluctuated
before taking the Colombian peso with
it.

23. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
Thus it can be expected that when oil
starts to recover so will the peso.

24. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
Raising Taxes to Balance
the Budget

25. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
Colombia’s current budget was based
on the assumption of $100 a barrel oil.

26. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
As oil revenue has fallen so have tax
revenues.

27. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
The nation has to increase taxes to
cover expenses.

28. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
The Bogota Post analyzes how the
Colombian peso is hit hard by the
fall in oil.

29. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
This situation causes a number of
problems. Firstly, the dramatic drop in
the price of oil means that Colombia’s
original 2015 budget is no longer
worth the paper it was written on.

30. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
The country made assumptions on
earnings based on a price of oil which
no longer applies.

31. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
This has been adjusted for by raising
taxes to plug the budget deficit

32. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
But analysts are already saying a
further tax hike may be necessary if
the price of oil continues to fall.

33. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
Secondly, although Colombia is not an
oil economy in the same way as, for
example, Venezuela

34. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
Oil still accounts for a large portion –
over 50 percent – of the country’s
exports.

35. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
If prices stay low in the long-term, the
country will be forced to adjust the
peso and cut public sector spending to
make up for the sudden loss of
income.

36. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
While Colombia muddles through with
a weaker peso traders may expect to
see the COP recover

37. http://www.forexconspiracyreport.com/trading-the-colombian-peso/
As it always does, when the economy
improves and the price of oil rises.