The depreciation of the Colombian peso and Colombian stocks continues.

The exchange rate of the dollar in Colombia for Friday, February 23, increased by 5.38 pesos, corresponding to a rise of 0.14%. It reached the highest level in over 2 weeks.

The dollar closed higher in Friday’s trading sessions, recording a price of $3,964.23, representing an increase compared to the currency’s closing price on Thursday, which stood at $3,929.

Over the past week, the price of the dollar has remained above $3,900, reaching its highest point for market closure at $3,964, as seen this Friday, and the lowest at $3,909.

The minutes of the latest meeting of the Board of Governors of the Federal Reserve of the United States altered the market’s projections regarding a potential cut in the high interest rates that have been present in the United States for more than a year.

However, on Wall Street, Colombian stocks are rising thanks to the performance of the banking sector. The slow pace and inability of Colombian President Gustavo Petro to get some “anti-market” packages of measures approved by Congress facilitate the Friday’s rise.

The most representative ETF of the Colombian market, the Global X Colombia, shows a positive 1% variation and is at the highest level of the week.

Gustavo Petro’s inability to pass socialist reforms in Colombia is perceived as beneficial for Colombian assets due to the stability it brings to the investment environment. Petro’s socialist agenda, if implemented, could potentially introduce policies that unsettle investors and undermine confidence in the market.

However, his challenges in passing such reforms through Congress have resulted in a more moderate economic environment, reassuring investors and allowing Colombian assets to perform more steadily.

The perceived risk of radical policy shifts diminishes, contributing to a positive sentiment among investors and supporting the upward trajectory of Colombian assets, including the Global X Colombia ETF, which reflects improved market conditions and investor confidence in the country’s economic stability.