The basic unit of currency is the Colombian peso . The Bank of the Republic is the sole bank of issue and operates the mint, salt, and emerald monopolies for the government. It also shares responsibility for monetary policy with the government monetary board. More than 25 commercial banking institutions, as well as the government development banks and several other official and semiofficial financial institutions, operate in Colombia. Stock exchanges serve Bogotá, Medellin, and Cali.

Colombia is primarily an agrarian nation, although it experienced rapid industrial growth in recent decades. In the early 1990s the country undertook an economic reform program that opened its economy to international trade and investment, and it is the only country in Latin America that maintained scheduled payments on loans during a debt crisis in the late 1980s. For these reasons the country enjoys one of the highest credit ratings in the region. Colombia's agricultural sector once was dependent on coffee as its principal cash crop, but has successfully diversified since a decline in international coffee prices in the late 1980s. Its mining sector contributes significantly to the economy, with large deposits of fossil fuels, precious metals, and emeralds, of which Columbia supplies about one-half the world supply. In the early 1990s the estimated annual budget included revenues of $11 billion and expenditures of $12 billion. The gross domestic product was $50 billion, or about $1470 per capita; not included in these official statistics is the economic impact of coca cultivation and the illegal cocaine trade, reportedly with profits worth $300 million annually in the early 1990s.

The variety of climates and topography produces enormous diversity in agricultural products. Coffee, Colombia's principal agricultural export commodity, is grown in temperature zones on mountain slopes. Citric and other fruits, tomatoes, jute, corn, beans, yucca and cereals are also cultivated in temperature zones. In hot climate zones cotton, bananas, rice, sugar cane, African palm, cocoa, tobacco, sorgum, soya and innumerable tropical fruits such as pineapple, papaya, coconut and mango are grown. Cool climate zones are suitable for the cultivation of potatoes, wheat, barley, garden vegetables, fruits and flowers. Colombia exports numerous agricultural products, including flowers, bananas and exotic fruits.

Mining is a very important economic sector and constitutes one of the Country's principal exports. Coal reserves in the north of the Country and petroleum deposits in the east are especially important. Colombia is the world's principal producer of high quality emeralds, and is also an important producer of platinum, gold and silver.Colombia's economy has grown steadily since 1991, when the government implemented sweeping economic reform measures. President Samper, who took office in August 1994, has pledged to maintain those reforms while expanding government assistance for poor Colombians, who continue to make up about 40% of the population. In an effort to bring down inflation, Samper has arranged a "social pact" with business and labor to curtail price hikes and trim inflation to 18%. The rapid development of oil, coal, and other nontraditional industries, along with copious inflows of capital and strengthening of prices for coffee , have helped keep growth at 5%-6%. Development of the massive Cusiana oilfield provides the means to sustain this level over the next several years. Exporters say, however, that their sales have been hampered by the appreciation of the Colombian peso, and farmers have sought government help in adjusting to greater foreign competition. Moreover, increased foreign investment and even greater domestic growth have been hindered by an inadequate energy and transportation infrastructure and by violence stemming from drug trafficking and persistent rural insurgency.

Illicit drugs: illicit producer of coca, opium poppies, and cannabis; about 45,000 hectares of coca under cultivation; the world's largest processor of coca derivatives into cocaine; supplier of cocaine to the US and other international drug markets; active eradication program against narcotics crop

Economic aid:
recipient: US commitments, including Ex-Im (FY70-89), $1.6 billion; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $3.3 billion; Communist countries (1970-89), $399 million

Currency: 1 Colombian peso (Col$) = 100 centavos

Exchange rates: Colombian pesos (US$1 - 1,124.25 (November 1997), 1,089.25 (October 1997), 1,046.67 (June 1996), 844.84 (1994), 863.06 (1993), 759.28 (1992), 633.05 (1991).

Commerce and Trade

The principal export of Colombia is coffee, which typically accounts for about one-sixth of the yearly value of all exports. Petroleum, cotton goods, fresh-cut flowers, bananas, chemicals, sugar, coal, gold, emeralds, and cattle are other leading exports. The most important imports are mechanical and electrical equipment, chemicals, food, and metals. Colombia's annual exports earned about $6.9 billion and its imports cost some $6.7 billion in the early 1990s. The United States is Colombia's main trading partner, and Venezuela, Germany, Japan, the Netherlands, Brazil, and Peru also have a significant amount of trade with the country. An original member of the Andean Group (1969), Colombia entered into two other trade associations in 1995, the Group of Three and the Association of Caribbean States (ACS). The Group of Three, composed of Mexico, Venezuela, and Colombia, aims to phase out trade barriers between those countries. The ACS, composed of the members of the Caribbean Community and Common Market (CARICOM) and 12 other Latin American nations, was the fourth largest trading bloc in the world in the mid-1990s. In addition, the Andean Group planned to create an Andean Common Market by the end of 1995. These associations assured Colombia an important position in regional trade.

Transportation and Communications

The irregular terrain of Colombia makes the construction of roads and railroads costly. Colombia has approximately 2761 km (about 1716 mi) of operated railroad track. Most of the national railroads are feeder lines to the Magdalena River, the main transport artery of the country, which with the Cauca River is navigable for about 1500 km (about 900 mi). Colombia has no regular passenger rail service. Roads total about 107,400 km (about 66,700 mi), including a part of the Simon Bolivar Highway, linking Caracas, Venezuela, through Bogotá and other Colombian towns, with Quito, Ecuador. Air transport was begun in Colombia in 1919, and the country is now served by domestic and international airlines. In 1946 Colombia, Venezuela, and Ecuador agreed to establish the Great Colombia Merchant Marine; Venezuela withdrew in 1953. The main seaports are Buenaventura, Tumaco, Santa Marta, Barranquilla, and Cartagena.

Labor

The labor force of Colombia numbers about 12 million; about 30 percent is engaged in agriculture, forestry, and fishing, 24 percent in industry and mining, and most of the remainder in service industries. More than 1.6 million. people are in organized trade unions, mainly the National Union of Colombian Workers (1.2 million members) and the Colombian Confederation of Workers (400,000 members). The right to strike is constitutionally guaranteed to all employees who are not engaged in public utilities.