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Central Bank Governor Speaks To Lawmakers

COLOMBIA
  • USDCOP spent Monday erasing much of the bounce witnessed late last week, settling around 3940 into the close. USDCOP remains within the 3880 and 3980 range seen YTD, supported by still high yields and one-month implied volatility close to a four-year low. This could be tested in the coming weeks as BanRep comes under more pressure to step up the pace of rate cuts.
  • President Petro’s intentions to transform Colombia’s economic model has prompted a personnel crisis, with a stream of cabinet ministers and technocrats leaving their posts. The latest departure saw Jorge Iván González — who was seen as a key voice of moderation within the government — sacked as head of the National Planning Department in a dispute over infrastructure spending.
  • On the docket today, Colombian central bank governor Leonardo Villar is scheduled to speak to lawmakers in a political control debate at 1500GMT/1000ET. Elsewhere, inflation data is expected late Thursday, where the annual headline rate is expected to decelerate further to 7.70%, and the core reading improve to 9.10%.

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