Colombia: Colombian peso remains broadly stable
August 31, 2011
On 31 August, the Colombian peso (COP) traded at 1,783 per USD, which represented a slight depreciation of 0.3% compared with the previous month's position. On a year-on-year basis, nominal appreciation of the peso was 2.2% versus the USD. That said, COP is currently trading at around levels not seen since the financial crisis started in the summer of 2008. The recent appreciation of the COP was halted due to volatility in global markets, which had triggered a significant exodus of capital to safe-haven assets, as well as regular forex interventions by the Central Bank. The Bank has been purchasing a minimum of USD 20 million per day in the foreign-exchange market and plans to continue this pattern until at least 30 September. In addition, analysts are pricing in further intervention in the fx markets if the COP resumes its rally.