The Colombian peso strengthened to 3,425 per USD in June, its highest level in about six years, after right‑wing candidate de la Espriella won the presidential runoff election. The president‑elect, widely viewed as a political outsider, defeated leftist candidate Cepeda, who had the backing of outgoing President Petro, following a surprise outcome in the first round.
The peso’s rally was mirrored across other Colombian asset classes. During the campaign, de la Espriella pledged to reduce Colombia’s widening budget deficit at a time of increasingly strained public finances. Last year’s fiscal shortfall reached 6.4% of GDP, a key factor cited by the central bank in maintaining a restrictive monetary policy stance. He also vowed to support coal mining and oil exploration and production, sectors that have faced strong opposition from the incumbent administration.
