Cementos Argos - August 2015
Cementos Argos, along with Colombia’s other cement manufacturers, will be keeping a close eye on the country’s currency as the peso fell to a record low earlier this month as oil prices continued to tumble. The recent decline marks a 37 per cent slide in the currency’s value against the US dollar over the last 12 months. An almost 60 per cent drop in oil prices over the last year has prompted Colombia’s Central Bank to revise down its 2015 growth forecast for a third time and keep its lending rate unchanged at 4.5 per cent since August last year.
The country’s currency crisis and heavy dependence on oil exports has gained it a place in what has become known as a “fragile five” this month. According to JP Morgan, Colombia and Mexico have joined Turkey, South Africa and Indonesia as the “fragile five” emerging markets – a move that will do little to bolster consumer confidence or drive an increase in cement demand.