The Peso Tumbles Again - Guevara Out As Finance Minister

I keep telling myself I won't do daily articles, but Colombia proves me wrong.

Diego Guevara, Colombia’s Finance Minister, has resigned after ongoing disputes with President Gustavo Petro over budget cuts. The announcement adds to the growing instability within Petro’s administration, which has seen frequent cabinet reshuffles and increasing concerns over economic policy. It see

Guevara’s departure reportedly followed a "calm and friendly" discussion with Petro, though the underlying tensions over budgetary issues were clear. His exit is yet another sign of dysfunction within the government, which has struggled to maintain a consistent economic strategy. Markets reacted immediately, with the Colombian peso weakening by over 1%, signaling a lack of confidence in the administration’s handling of fiscal matters.

For expats living in Medellín, this resignation is a reminder of the broader economic uncertainty under Petro’s leadership. The Colombian economy has already been under strain due to erratic policies and an apparent disregard for financial stability. The frequent turnover of key officials raises questions about the government's ability to implement long-term reforms. With 12 out of 19 ministers already replaced, Petro's administration looks increasingly unstable, which could lead to abrupt policy shifts that impact foreign investment, business operations, and everyday expenses.

We as expats should be particularly mindful of how this instability affects the cost of living. A weakening peso could mean higher prices for imported goods, and budgetary conflicts could result in reduced public services. Those who rely on Colombia’s economic stability for business or long-term residency should pay close attention to further developments.

Petro’s leadership has been marked by ideological rigidity and a refusal to accept pragmatic economic solutions. His tendency to push away experienced officials in favor of loyalists raises concerns about governance and the country’s financial future. With Guevara out, the question remains whether the next finance minister will bring stability or if Petro’s policies will continue to drive uncertainty.