Colombia and Ecuador Lead Dollar Bonds on Oil Boom

Bogotá / Quito: The sovereign dollar bonds of Colombia and Ecuador ranked among the best performers in Latin America during the first quarter of 2026, driven by rising international crude oil prices, which surpassed $116 per barrel in March following the escalation of the US-Iran conflict, Bloomberg reported. Colombia's local-currency debt also posted standout returns in the period.

According to Bloomberg, currencies across the region — from the Brazilian real to the Argentine peso — are among the few in emerging markets that have strengthened against the US dollar since the start of the Iran war. This trend reflects the net benefit that oil and commodity-exporting economies in the region obtain from the global energy crisis.

Political Risks in Colombia

However, Colombia also faces significant political pressures. Right-wing presidential candidate Abelardo de la Espriella has promised to seek "a new Plan Colombia" with Washington for combating drug trafficking if elected in May 2026. Center-right candidate Paloma Valencia has proposed reducing taxes and expanding energy generation, including geothermal and nuclear plants. Meanwhile, the approval rating of outgoing President Gustavo Petro stands at around 29%.

Ecuador and the Export Boom

Ecuador, for its part, benefits from the increase in its oil revenues, with exports reinforced by rising prices. President Daniel Noboa's government continues with its close security cooperation policy with Washington, which contributes to reducing the perception of sovereign risk among international investors and maintaining favorable external financing conditions for the country.