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BOGOTA, May 20 (Reuters) - Colombia’s peso currency and main stock index fell significantly in opening trading on Thursday after S&P Global Ratings downgraded the Andean country’s credit rating.
The agency lowered its long-term foreign currency rating on Colombia to BB-plus from BBB-minus on Wednesday, saying it believes the country’s fiscal adjustment will be more protracted and gradual than previously expected. It added that its outlook on the country is stable.
The peso fell 1.55% to 3,742 pesos per dollar, while the country’s main stock index COLCAP fell 2.18% to 1,238.11 points.
“We anticipated a negative price reaction in the Colombian financial markets today, but we think it will be of short duration,” said Andres Pardo, chief of Latin America strategy for XP Investments, citing a long-time expectation the country would lose investment grade.
UPDATE 1-Colombian peso, stock index down on S&P downgrade
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UPDATE 1-Colombian peso, stock index down on S&P downgrade
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Colombian peso, stocks drop after tax plan s withdrawal by Reuters
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By Nelson Bocanegra
BOGOTA, May 3 (Reuters) - Colombia s peso, public debt and stocks depreciated on Monday after President Ivan Duque withdrew a tax reform proposal seen as important for the country s fiscal stability, sparking market uncertainty and comment from ratings agency Moody s.
Duque withdrew the proposal on Sunday after staunch opposition from lawmakers and deadly street protests, but he said tax reform is still necessary and that a new proposal will be made with consensus among business leaders, political parties and civil society.
The withdrawn proposal, originally intended to raise more than $6 billion in revenue, would have increased taxes paid by individuals and businesses, expanded sales taxes and eliminated exemptions and deductions.