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Colombia is dumping forex in large quantities to support the peso exchange rate and alleviate fiscal concerns.
The Colombian government has begun selling forex in the spot market to support the peso exchange rate and alleviate fiscal concerns, having sold about $1.7 billion in the past three days. This is part of its debt management strategy, and it is expected to obtain around $2.4 billion in cash from total return swaps for debt repayment.
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