Colombia is dumping forex in large quantities to support the peso exchange rate and alleviate fiscal concerns.

Jin10 data reported on September 25 that, according to foreign media, the Colombian government has begun to sell forex in large quantities on the spot market to support the exchange rate of the peso and alleviate fiscal concerns. This is part of an unprecedented debt management operation. The public sector has sold approximately $1.7 billion in the local forex market over the past three days. This transaction marks the first of its kind in Colombian government history and is part of the overall strategy of public credit director Javier Cuellar to reduce the debt burden. Barclays estimates that Colombia may preemptively obtain about $2.4 billion in cash from total return swap transactions, which can be used to repay local bonds and bolster the treasury.