Macroeconomic Forecast Colombia

BMI View: Given that the Colombian central bank is now purchasing a minimum of US$20mn per day in a plan to accumulate foreign exchange reserves and stem currency appreciation, we believe the country is well on track to meet our projection of holding US$28.0bn of international reserves by end-2010. The positive outlook for reserve growth is further supported by a strong balance of payments outlook, which we expect to be bolstered by a large financial and capital account surplus derived from significant volume of capital inflows over the medium term.

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