The Colombian peso, along with the Mexican peso, have become the strongest currencies in Latin America as they continue to gain great value against the US dollar so far in 2023.
“The currencies of Colombia and Mexico occupy the first and second positions, respectively, in measuring the performance of the currencies of emerging countries,” according to Bloomberg.
The two countries have been favored by the economic expectations that have been set worldwide. At the beginning of the year, experts said that there could be a recession due to the pressure on central banks to contain inflation.
“In Colombia’s case, President Gustavo Petro is promoting reforms in the health, pension, and labor systems, which are being complicated by the scandals involving his government,” Elijah Oliveros-Rosen, analyst for Latin America at the risk rating agency Standard & Poor’s, told BBC Mundo.
“The market knew that these reforms would have a high fiscal cost and is now discounting that they will not be able to be carried out, which increases confidence in the Colombian currency,” he added.
