Banco de la República buys $696 million in reserves

Banco de la República has purchased $696 million between August and September under its international reserve accumulation program. The plan allows the central bank to acquire up to $4,000 million through monthly auctions of put options of $400 million each.

According to the central bank, the exclusive objective of these operations is to strengthen Colombia's international reserves, which currently total $67,000 million. Former central bank general manager Juan José Echavarría noted that the official plan seeks to increase liquidity buffers, adding that the total purchases represent roughly 6% of existing reserves.

Market observers point out that the purchases also unfold against a strong currency rally. In 2026, the Colombian peso has appreciated 19.35%, leading gains among 21 emerging market currencies tracked. Echavarría indicated that the central bank remains attentive to the pressure this appreciation puts on export sectors.

Hernán Alzate, president of the Colombian Financial Market Self-Regulator (AMV), highlighted that the spot market trades between $1,200 million and nearly $1,400 million daily. Because auctions occur once a month for $400 million, both Alzate and Echavarría noted that their ability to establish a floor for the exchange rate remains limited.