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Colombian investors can now trade shares of the IBIT Bitcoin ETF, issued by BlackRock, in pesos, marking a significant development in the country's financial markets. This ETF, managing over 500,000 BTC and valued at $50 billion, offers regulated access to Bitcoin, facilitating portfolio diversification while lowering barriers for new participants in the crypto sector. Currently, IBIT shares are trading at an average price of 242,960 pesos, approximately 55 US dollars, reflecting its valuation in global markets.
Colombian finance chief Ricardo Bonilla has resigned amid corruption allegations, complicating the government's efforts to raise taxes. Following the announcement, Colombia's dollar bonds declined, erasing earlier gains, while the nation's five-year credit-default swaps increased by four basis points to 201 basis points.
Colombia's government has announced a 5.6% cut to the 2024 budget, equating to a reduction of 28.4 trillion pesos ($6.4 billion), in response to lower-than-expected tax revenue. This decision reflects the administration's commitment to adhere to fiscal spending limits, estimated at 5.6% of GDP for the year.
Colombian lawmakers have eased fiscal restrictions in a decentralization bill, raising concerns among investors. The constitutional committee of the lower house removed a requirement for the bill, which aims to allocate up to 39.5% of central government revenue to regional authorities by 2039, to align with the government's mid-term fiscal framework.
Colombia"s economy experienced a growth of 2% in the third quarter compared to the same period last year, according to data released by the government"s DANE statistics agency. This growth reflects the ongoing economic developments within the country.
The Colombian peso has experienced significant losses, leading declines among emerging-market currencies, as it fell 2% against the dollar, reaching its lowest point since May 2023. Concerns over fiscal risks and fluctuations in oil prices, the country's key export, have contributed to the peso's decline of over 14% this year. The currency's sensitivity to risk-off sentiment has increased, coinciding with a strengthening dollar following Donald Trump's election victory.
Colombia's EV market is thriving, with BEVs surpassing 1,000 sales in October, achieving a 6.4% market share. The BYD Seagull and Yuan Up lead sales, while Kia's EV5 and Chevrolet's Equinox EV are strong contenders. As affordable models flood the market, EV adoption is set to rise significantly.
Colombia's consumer prices unexpectedly fell by 0.13% in October, marking the first decline in over three years and surprising analysts who had predicted a 0.16% increase. This development strengthens President Gustavo Petro's case for implementing deeper interest rate cuts.
Colombia's central bank has reduced its key interest rate by 0.5 percentage points to 9.75%, despite market pressures for a more aggressive cut. The decision, made by a 4-3 vote, reflects concerns over fiscal risks that have weakened the peso to its lowest level in over a year.
Texas's newest solar farm has a nameplate capacity of 875 MW, with 85% allocated to power Google data centers, raising concerns about the increasing energy demands of AI technologies. At a recent conference in Riyadh, industry leaders warned that electricity use could surge by 40% in the next decade, potentially straining global grids. As tech giants explore nuclear and renewable energy sources, the rush to support data centers may divert resources from meeting the needs of ordinary consumers.
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