Webinar

Global risk transmission to local financial conditions and the participation of foreign investors in Emerging Market Economies’ sovereign bond markets: The case of Colombia

Date:

Wednesday, April 22, 2026

Time:

2:00 p.m. (Bogotá)
4:00 p.m. (San José)

Webinar objective

This webinar analyzes and discusses the transmission of global risk to local financial conditions and the role of foreign investors in sovereign debt markets in emerging economies, based on the paper by Oscar Botero-Ramírez, Andrés Murcia, and Hernando Vargas-Herrera.

Foreign investor participation in Colombia’s local sovereign debt market increased significantly after 2014, reducing yields and supporting local currency debt issuance as well as market liquidity. However, it also heightened the market’s sensitivity to global financial shocks. Empirical analysis suggests that during periods of high foreign participation in the local sovereign debt market (2014–2022), global risk factors had a stronger impact on domestic financial conditions. In contrast, the recent decline in foreign participation since 2023 has partially reduced this sensitivity. The Central Bank’s flexible inflation-targeting regime, supported by a fully flexible exchange rate and strong external buffers, has helped manage these risks, as demonstrated during the COVID-19 pandemic. The evolving composition of foreign investors remains a key channel for the transmission of global shocks to Colombia’s financial conditions.

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Global risk transmission to local financial conditions and the participation of foreign investors in Emerging Market Economies’ sovereign bond markets: The case of Colombia
Authors: Oscar Botero-Ramírez, Andrés Murcia, Hernando Vargas-Herrera
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Panelist

Andres Murcia
Director of Monetary Operations and International Investments, Bank of the Republic of Colombia (Central Bank)
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Panelist

Alonso Alfaro
Chief Economist, Central Bank of Costa Rica
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Moderator

Iader Giraldo Salazar
Chief Economist, Central Bank of Costa Rica
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Andrés Murcia

Director of Monetary Operations and International Investments, Bank of the Republic of Colombia (Central Bank)

Andrés Murcia has served as Deputy Governor for Monetary and International Investment Affairs at Banco de la República since July 2022. This area is responsible for supporting the design and implementation of monetary, exchange rate, and credit policies conducted by the central bank. It also produces and prepares technical and public policy documents related to its functions. In his role, he participates in internal Bank committees, as well as in decision-making bodies regarding the provision of liquidity to the economy and the management of international reserves and sovereign funds. He also contributes to the preparation of key institutional reports, including the Financial Stability Report, the Financial Markets Report, the International Reserves Management Report, and the Financial Market Infrastructures Monitoring Report, among others. He holds a degree in Economics and a Master’s in Economics from Universidad de los Andes, as well as a Master’s in Financial Markets and Intermediaries and a Master of Philosophy in Quantitative Economics from Toulouse 1 University, France. Previously, he has held positions such as Senior Financial Advisor at the Ministry of Finance and Public Credit, Advisor to the General Manager, Director of the International Affairs Unit, and Advisor to the Monetary and International Investment Department at Banco de la República. He was also a visiting economist at the Bank for International Settlements (BIS) Representative Office for the Americas in Mexico City. Additionally, he has teaching experience at prestigious universities, including Universidad de los Andes and Toulouse 1 University, and has published articles in well-regarded national and international academic journals.

Alonso Alfaro

Chief Economist, Central Bank of Costa Rica

Alonso Alfaro Ureña is the Chief Economist at the Central Bank of Costa Rica and a professor in the Department of Economics at the University of Costa Rica. His research focuses on international trade, development, and the role of multinational firms in shaping economic outcomes. He has produced influential academic work on global supply chains, firm dynamics, and labor market effects, with publications in leading journals such as the Quarterly Journal of Economics.

His research agenda combines empirical analysis and economic modeling to study how multinational corporations affect firms and workers, as well as how policies like responsible sourcing influence wages, employment, and welfare. His work highlights both the benefits and trade-offs of global economic integration, particularly for developing countries. In addition to his academic contributions, Alfaro Ureña actively engages in policy discussions through his role at the central bank, contributing to economic analysis and decision-making in Costa Rica.