Colombia's peso is up 19% this year as a new president meets a split central bank
Colombia's peso has gained 19% against the dollar this year, making it one of the region's strongest-performing currencies. But the new president now has to work with a central bank board split over interest rate decisions.
Analysts attribute the peso's strong run to elevated interest rates, solid foreign reserves and a recovery in commodity exports. But the divide within the bank's board leaves the future direction of monetary policy uncertain.
Board members hold differing priorities between controlling inflation and supporting economic growth. That divide has left markets uncertain about the timing of future rate cuts.
The new president is now seeking ways to work with the divided board while forming an economic team. Investors will be watching closely for decisions made at upcoming policy meetings.
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