MONEY MARKET RATES:

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When the international markets alter its intervention rates, it affects the Colombian market’s interest rates, the exchange rate and the cost of credit, thereby activating mechanisms that affect the financial markets of the country, the decisions by economic agents on expenditure, production and employment, the expectations of economic agents, based on of policy announcements and last but not least the inflation rate, after a long and variable period of time. Any country with an important monetary founds affects our economy, also our neighbor’s economy affects ours in terms of products.

 

Recently we found 2 important money markets rates that affect directly to Colombia. First of all, we found the suspension of operations of the stock exchange of china that has been suspended 2 times since 2016 started. This important fact and the decrease of the petroleum rate helped most currencies of emerging countries, among them the Colombian peso will weaken further.

The dollar went up immediately after this fact, affecting the economy in less than a week, making the Colombian peso one of the most undervalued currencies in the region, only 4.4 percent.