Post by ReadTBS

The Colombian peso has strengthened 13.2% against the dollar — its best run since 2021 — and is the second-best performer in Latin America behind only the Mexican peso. Why does this matter?  Colombia's central bank has kept rates elevated while the Fed pivots, creating a yield differential that is pulling foreign capital into Colombian bonds and equities. For investors, this is a window: a strong peso makes Colombian assets cheaper to enter in real terms, but it also pressures export competitiveness — particularly in coffee, oil, and cut flowers. The question isn't whether this rally holds. It's whether the central bank starts cutting into it before the window closes. 🔗 www.readtbs.com