25 August 2012

COLOMBIA : CBank Cuts Benchmark By 25 Bps; $700 USA Million Currency Buy Announced; Santos Will Keep Embattled Defense Minister Pinzon.


     For the second straight meeting...the central bank has lowered its benchmark rate...but only by 25 bps...to 4.75%.
     It also announced a $700 million buy of USD by September end...to weaken its currency.
    The peso has shot up by 6.8% since January...the world's biggest currency gainer. 

   AND: Despite a massive cabinet shake-up...President Juan Manuel Santos will keep his embattled Defense Minister Juan Carlos Pinzon.
     Recently...FARC narco/oro extortionists have stepped-up raids on Colombia's oil and rail infrastructure...and Santos' approval has plummeted.