Macroeconomic Forecast Colombia

Colombia's foreign reserves hit US$25.0bn at end-2009, and look set to continue rising as the monetary authorities extend US dollar purchases to stem peso strength. If FDI inflows continue expanding in 2010 (inward FDI flows rose by an average 25% y-o-y over the first three quarters of 2009), this could place upside pressure on our end-2010 reserves projection of US$28.0bn, although the threat of another leg down in global risk appetite lead us to hold with our current forecast for the time being.

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