Administrative Department

June 17th, 2013 by nathan Leave a reply »

The appreciation of the exchange rate also It could adversely affect the income of the foreign direct investment (FDI), if it considers that the Colombian peso is excessively valued, and with which one would expect a reversal in their behavior that would affect the expected profitability of investments measured in dollars. There is a positive aspect of the exchange rate appreciation in an economy that has been growing at a good pace as it is the Colombian and that lies in the observed fact of an increase in imports of cheaper exchange rate strengthening capital goods. According to the last report of Dane (National Administrative Department of statistics), the appreciation of the peso in conjunction with the expansion of the Vallejo Plan towards the services sector (eliminating the tariff for imports of capital goods used in the provision of services which are exported). These two factors contributed so that capital goods imports posted an increase in the period January-April, from 24.5% in interannual terms. So which reflects the Colombian website in a note, clearly this increase in imports of capital goods improves the competitiveness of Colombian companies. So you might think that what is losing competitiveness by the appreciation of the exchange rate, is (at least partially) offset with the improvement in productivity by the incorporation of cutting-edge technology. And what you can expect the inverter in this context? Although the exchange rate appreciation plays against the prospects of the inverter, keep under control the inflationary dynamics, multiple opportunities exist of profitability in the Colombian economy. Colombia is pursuing an active policy of external opening through the conclusion of commercial agreements. It is also encouraging foreign investment in several sectors but with main focus on the energy sector (here vale remember also areas for oil exploration tenders). So that, the prospects for profitable investments in Colombia, are very positive, and they are linked to economic growth having quite possibly the country in the coming years.


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