Colombia’s peso rose to almost a three year high on record foreign investment flows and as companies continue to repatriate overseas revenue to pay local taxes this month.
The peso gained 0.6 percent to 1,747.8 per dollar at 10:17 a.m. New York time, from 1,757.8 yesterday.
The peso has jumped 9.7 percent since March 1, the best performance among 25 emerging market currencies.
Colombia’s foreign credit rating was upgraded to the lowest level of investment grade by Standard & Poor’s in March, Moody’s Investors Service in May and Fitch Ratings in June.
“First of all, this has to do with Colombia’s investment grade ratings, which have generated a flow of portfolio investment,” said Francisco Chavez, analyst at Corredores Asociados SA.
“Large foreign and local companies are bringing dollars from abroad to pay their taxes.”
Tax payments were concentrated last month and some continued making payments this month after President Juan Manuel Santos pushed back tax deadlines through the end of June for large taxpayers affected by a year of heavy rains, Chavez said.
Foreign direct investment jumped to $5.75 billion in the first five months of 2011 from a year earlier, with 86 percent going into oil and mining, according to the central bank.
That compares with $3.68 billion in the first five months of 2010.
Foreign investment into stocks and bonds jumped eight-fold to $841 million in the same period this year.
The yield on Colombia’s 10 percent bonds due July 2024 rose three basis points, or 0.03 percentage point, to 7.79 percent, according to the stock exchange.
The bond’s price fell 0.25 centavo to 117.682 centavos per peso.
The peso gained 0.6 percent to 1,747.8 per dollar at 10:17 a.m. New York time, from 1,757.8 yesterday.
The peso has jumped 9.7 percent since March 1, the best performance among 25 emerging market currencies.
Colombia’s foreign credit rating was upgraded to the lowest level of investment grade by Standard & Poor’s in March, Moody’s Investors Service in May and Fitch Ratings in June.
“First of all, this has to do with Colombia’s investment grade ratings, which have generated a flow of portfolio investment,” said Francisco Chavez, analyst at Corredores Asociados SA.
“Large foreign and local companies are bringing dollars from abroad to pay their taxes.”
Tax payments were concentrated last month and some continued making payments this month after President Juan Manuel Santos pushed back tax deadlines through the end of June for large taxpayers affected by a year of heavy rains, Chavez said.
Foreign direct investment jumped to $5.75 billion in the first five months of 2011 from a year earlier, with 86 percent going into oil and mining, according to the central bank.
That compares with $3.68 billion in the first five months of 2010.
Foreign investment into stocks and bonds jumped eight-fold to $841 million in the same period this year.
The yield on Colombia’s 10 percent bonds due July 2024 rose three basis points, or 0.03 percentage point, to 7.79 percent, according to the stock exchange.
The bond’s price fell 0.25 centavo to 117.682 centavos per peso.
Posts
No comments:
Post a Comment
Thanks for your visit, hope you enjoy the content, we expect to see you again soon.