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COP Under Significant Pressure Amid Anti-Reform Marches

COLOMBIA
  • COP was the worst performing EM currency on Wednesday, declining around 2.5% as the combination of a stronger dollar, weaker commodity complex and domestic political uncertainty all added pressure on the peso. The late recovery for crude futures and slightly softer dollar index may help stabilise the currency at today’s open.
  • Thousands of anti-government protesters took to the streets in Colombia’s main cities to oppose President Gustavo Petro’s plans to boost the role of the state in health care and pensions.
    • The demonstrations came just a day after Petro’s supporters held their own marches to back his health care bill sent to congress earlier this week.
  • Colombia’s pension, health, labor, and agrarian reform need to align with the nation’s fiscal rule, Finance Minister Jose Antonio Ocampo said in a statement sent by text.
    • Ocampo reiterated the government’s commitment to fiscal consolidation, the adjustment of external accounts, and macroeconomic stability. (BBG)

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