Colombia has a floating exchange regime, which allows the currency to work as a shock absorber under local and global economic events. Transactions in the foreign exchange market are done through the Exchange Market Intermediaries (Intermediarios del Mercado Cambiario, IMC) and are registered in the SET-FX electronic trading platform.
Colombia’s corporate bond segment is an important component of the country’s capital market, despite its relatively small size and liquidity. The total amount outstanding at the end of 2016 was COP48.1tn ($14.4bn), or an estimated 5.5% of GDP.
As in many emerging markets, deepening the banking system and boosting financial inclusion have presented challenges for the Colombian banking sector. Rapid improvements in – and the dissemination of – internet and mobile phone technology in recent years have led to increased take-up of mobile banking services. Policymakers see this channel as...
Although the Colombian economy has been affected by a slowdown in recent years, the country’s banking sector has remained resilient. The majority of the impact has been felt in the external sector, particularly due to changes in the foreign exchange rate. Meanwhile, lending growth remained relatively strong until mid-2016, when the combined...
Developments in Colombia’s capital markets in recent years reflect those in the wider economy. The well-established sovereign fixed-income market has seen increased issuance as the government seeks to finance its widening budget deficit while rolling over its existing stock of debt. Increased global economic uncertainty, with bouts of extreme market volatility that particularly impact emerging...
Stay updated on how some of the world’s most promising markets are being affected by the Covid-19 pandemic, and what actions governments and private businesses are taking to mitigate challenges and ensure their long-term growth story continues.
Register now and also receive a complimentary 2-month licence to the OBG Research Terminal.
Register Here×