The recent rapid appreciation of the Colombian peso bears all the hallmarks of so-called ‘Dutch Disease’. But while policymakers are rightly concerned about the implications for the competitiveness of non-commodity sectors, there is little they can do to weaken the peso. The best hope in the short-term may be that commodity prices fall. In the long-term, however, structural reforms will be key to accommodating a stronger currency.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services