Colombia isn’t mulling FX intervention: Banker

Bloomberg

Colombia’s central bank isn’t discussing taking measures to ease declines in the peso, even as the currency hit a record-low earlier this week, according to one member of the monetary policy committee.
The peso has plunged 7.5 percent in the past three months, making it the worst performing emerging market currency after the Argentine peso, amid slowing global growth, weak oil and coal prices and investor concern over the nation’s wide current account deficit. It surpassed the high end of the 3,300 to 3,500 range that central bank Governor Juan Jose Echavarria has deemed “comfortable.”
What would be worrying is if the currency’s depreciation is passed through to consumer prices, but there is no sign that is happening in a significant way, central bank co-director Jose Antonio Ocampo said.
“No exchange rate intervention measures are being
discussed within the board,“ Ocampo said. So far, “we haven’t seen an inflationary effect, which doesn’t necessarily mean there won’t be one.”