Colombia’s peso has weakened following speculations that the government might need to increase its allocation for rebuilding efforts in the aftermath of heavy floods that left thousands homeless and damaged roads across the country. But a Bogota-based analyst said that the decline is temporary and marginal and should not have any long-term impact, Bloomberg said. Colombia’s public credit director, German Arce, has explained that the government would not increase debt sales to raise money for rebuilding efforts but may have to raise taxes to help meet expected spending.

Colombian President Juan Manuel Santos said that the damage caused by the heavy rains and flooding that recently hit the county are worth approximately USD5.2 billion.

About the author

  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.