MNI China Daily Summary: Tuesday, December 10

MNI BRIEF: China Nov Exports Slows, Imports Slide

MNI BRIEF: China Crude Oil Imports Accelerate In November

MNI BRIEF: Brazil Annual Inflation Rises To 4.87% In November

CHINA NOV EXPORTS +6.7% Y/Y VS MEDIAN +8.9% Y/Y: CUSTOMS

MNI: CHINA YTD EXPORTS +6.7% Y/Y IN YUAN TERM: CUSTOMS

US NFIB NOV SMALL BUSINESS INDEX 101.7

MNI: GERMAN NOV CPI +2.2 % Y/Y

MNI: NORWAY NOV CORE CPI +0.1% M/M, +3% Y/Y

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

COLOMBIA: Finance Minister Quits Amid Corruption Allegations, Guevara Appointed

COLOMBIA
Political Risk BulletEM Bulletmarkets-real-timeBulletPolitical RiskEmerging Market News
  • Late Wednesday, it was announced that Ricardo Bonilla resigned as finance minister of Colombia amid allegations of corruption. President Gustavo Petro said in a post on X that he expected Bonilla’s resignation “not because I think he is guilty, but because they want to tear him apart for being loyal to the government program.”
  • Despite the local market being closed, analysts pointed to Colombia’s dollar bonds falling on the news and erasing gains for the day. Additionally, the nation’s five-year credit-default swaps jumped 4bps to around 201bps.
  • Later in the session, President Petro promoted Deputy Finance Minister Diego Guevara to the top job, which should help to calm market anxieties. Guevara is recognised by the markets and has been very open to investors over the past few months. BBVA note he is perceived as relatively fiscally orthodox and will likely uphold the line taken by Bonilla, maintaining a cautious approach. They add the appointment should help to curb the impact on the COP, protecting the USDCOP4450/4500 resistances.
  • Nevertheless, recent developments in Colombia have significantly increased the risk of overshooting the deficit limits established by the nation’s fiscal rule. Financing of the 2025 budget and tax increases will need to be immediately addressed, and it should also be noted that Guevara will now join the central bank board, where previously the Finance Minister has been the most outspokenly dovish member.
226 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Late Wednesday, it was announced that Ricardo Bonilla resigned as finance minister of Colombia amid allegations of corruption. President Gustavo Petro said in a post on X that he expected Bonilla’s resignation “not because I think he is guilty, but because they want to tear him apart for being loyal to the government program.”
  • Despite the local market being closed, analysts pointed to Colombia’s dollar bonds falling on the news and erasing gains for the day. Additionally, the nation’s five-year credit-default swaps jumped 4bps to around 201bps.
  • Later in the session, President Petro promoted Deputy Finance Minister Diego Guevara to the top job, which should help to calm market anxieties. Guevara is recognised by the markets and has been very open to investors over the past few months. BBVA note he is perceived as relatively fiscally orthodox and will likely uphold the line taken by Bonilla, maintaining a cautious approach. They add the appointment should help to curb the impact on the COP, protecting the USDCOP4450/4500 resistances.
  • Nevertheless, recent developments in Colombia have significantly increased the risk of overshooting the deficit limits established by the nation’s fiscal rule. Financing of the 2025 budget and tax increases will need to be immediately addressed, and it should also be noted that Guevara will now join the central bank board, where previously the Finance Minister has been the most outspokenly dovish member.