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While the dollar continues to rise in the foreign exchange market, the value of the shares on Thursday experienced an unprecedented fall in the recent history of Bolsa de Valores de Colombia. The General Index Shares fell 6.6 percent, the steepest decline since about five years ago when integrated into a single entity exchanges of Bogota, Medellin and the West on the third of July 2001. Without exception, all securities listed on the register stock fell.Low stronger over ten per cent, had Inverargos,, Valbavaria, Tablemac, Coltejer and action of the ETB. In this one week, the General Index lost about 18 percentage points and today recorded a fall so far during 2006 more than ten percent. Meanwhile, and despite the intervention of the Bank of the Republic who came to offer 180 million through what is known as call options auctions to control volatility, the exchange rate continued to rise leading the peso devaluation seven per cent so far during 2006. On average the dollar value increased by 14 pesos and 49 cents quoted two thousand 451 dollars with 51 cents. Investments in government bonds were devalued in so far as interest rates rose for the TES. The “mess” or instability of the Colombian financial markets was attributed by analysts and the government more to external factors and some of the proximity of the presidential election. The Minister responsible for Finance, Mar a In s Agudelo said that this fact is primarily attributable to new indicators on U.S. inflation fears by making a further rise in interest rates from the Federal Reserve. The minister said it is uncertain to know when will stabilize the high volatility with the markets. It said that what happened to the dollar, the TES and the action has no effect or decomposes macroeconomic national accounts. He said the economic fundamentals remain very strong and supportive and that in any way Colombia is ready for whatever comes. “This is not the untwisted” stressed the minister for whom what is happening in the Colombian market has little to do with the electoral process.

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