Colombia: Colombian peso weakens on global economic worries
September 30, 2011
On 30 September, the Colombian peso (COP) traded at 1,915 per USD, which represented a 6.9% nominal depreciation compared with the previous month's position and marked the biggest drop since January 2009. On a year-on-year basis, the peso depreciated 6.0% versus the USD. The COP's recent depreciation follows a similar pattern seen in other emerging market currencies. As prospects for the global economy deteriorate and financial markets become more volatile, investors relocate their capital into safe havens. On 30 September, the Central Bank announced that it will intervene in the foreign exchange market if the COP deviates by more than 2% from its 10 day moving average.