BOGOTA Aug 14 Colombia's government is buying
more than $300 million on the foreign exchange market this week
as part of an effort to stem gains in the country's currency
against the U.S. dollar.
Investment in the Andean country's oil and mining industries
has reached record levels in the past several years, bolstering
the value of the peso, which has been one of the biggest gaining
currencies among 152 tracked by Reuters.
"We're buying, on the government side, more than $300
million this week. The government is going to be utilizing
mechanisms to affect dollar demand, the central bank too, and
that is a dialogue we have with the central bank," Finance
Minister Juan Carlos Echeverry told journalists on Tuesday after
a meeting with lawmakers.
Echeverry did not say how many dollars the government had
purchased so far this week.
The government has called on the monetary authority to step
up dollar purchases to $40 million a day to stem gains in the
peso currency, which has firmed around 7.5 percent so far this
The bank currently buys at least $20 million a day on the
According to a report by the finance ministry, the bank
could boost reserves to as much $53.5 billion, from $34.3
billion now, and intervene more heavily in the currency market.