The US dollar closed lower in Colombia by $25.87, reaching $3,792.06, driven by massive TES bond sales and the declaration of an economic emergency for 2026. This decline occurs amid fiscal tensions and expectations of rate cuts in the US. Meanwhile, oil prices rise due to tensions in Venezuela.
Colombia's foreign exchange market saw a downward session for the US dollar, which ended at $3,792.06, below the Representative Market Rate (TRM) of $3,817.93. During the day, the currency hit a low of $3,778.81 and a high of $3,812.89, with 1,357 transactions totaling US$1.523 million. This bearish trend stems from investor caution ahead of a potential US rate cut next month, coupled with internal challenges like the economic emergency declared for 2026.
The National Government completed the direct sale of TES bonds worth $23 trillion to a foreign investor, hailed as the most significant to date, though with an average cutoff rate of 13.15%, among the highest recorded. The bonds, maturing in 2029, 2033, 2035, and 2040, yielded 12.99%, 13.05%, 13.24%, and 13.32%, respectively. "We expect the recovery of the resources that Congress defunded from the National Budget, which is already underfunded by $16.3 trillion," stated Finance Minister Germán Ávila.
The economic emergency aims to raise $16 trillion to address the deficit following the tax reform's failure, through levies on liquors, cigarettes, financial transactions, and corporate assets. Critics like former Dian director Lisandro Junco warn of adverse effects: "Creating a corporate asset tax hits cash flow and generates high costs in growth, investment, and employment, especially for SMEs."
Analysts point to fiscal stress: "What is happening is read in the market as a signal of fiscal stress and budgetary governance," said Juan Pablo Vieira, CEO of JP Tactical Trading. Globally, oil prices rebounded; Brent rose 0.86% to US$60.99 per barrel and WTI 0.88% to US$57.02, driven by the US interception of a Venezuelan tanker, raising supply disruption fears.
