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Data on the foreign exchange balance of the Bank of the Republic show a sharp slowdown in the economy Some of Colombia’s key international indicators also fell.
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In fact, according to the monthly consolidated foreign exchange balance of the Bank of the Republic, we see a decrease in the arrival of foreign direct investments (FDI) and, accordingly, a decrease in resources for the oil and mining sectors and an increase in capital outflows from foreign investment funds where they place their resources. fixed income securities, public debt and Colombian equities, as well as Colombia’s larger overseas investments.
Domestic foreign exchange balances provide information on monetary flows channeled through foreign exchange market intermediaries and the Bank of the Republic. For its part, the compensating account balance reflects foreign exchange flows received or paid. Under the foreign exchange regime, compensating accounts are foreign bank accounts registered with the Bank of the Republic, the movements of which are reported to the monetary authorities.
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At the end of July last year, Colombia’s comprehensive FDI balance was US$7.212 billion, a year-on-year decrease of 15%. By the same period in 2023, this figure had reached US$8.531 billion.
From this indicator, investment in the oil and mining industries has always been the largest contributor to total FDI. By the end of the seventh month of this year, the figure fell by 28% to $5.091 billion, compared to $7.067 billion in the same month of 2023. It is important to remember that this indicator does not necessarily mean a net inflow of resources from abroad, but it also shows the taxes paid by companies specializing in this industry using resources that come from profits, which do not necessarily come from profits or reinvestment.
Strong outflow of foreign capital
invest
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For its part, data from the Bank of the Republic’s foreign exchange balances showed exits or liquidations in portfolio securities in July, including fixed-income notes, public debt and Colombian equities. $2.013 billion, similar to $2.071 billion at the end of July 2023.
But the biggest impact of these figures on the foreign exchange balance is Colombia’s overseas investments, which reached US$2.045 billion in the first seven months. That is, 80% higher than the $1.138 billion as of July 2023.
While the results for this sector through July do not mean that the figures for other months will be repeated, it is true that The historical record could come by the end of 2024.
It is important to remember that in 2023, Colombia’s foreign direct investment (FDI) inflows reached a nine-year high, with The total balance is $13.068 billion, up 16% from $11.262 billion in 2022.
In 2023, $10.354 billion will come from the oil and mining sectors, or 79.2% of Colombia’s total outbound investment. Reaching US$2.437 billion, a strong increase of 66.3% over 2022.
Holman Rodriguez Martinez
Folders
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