Colombia’s currency has fallen 1.19 per cent against the dollar today, to 1,918, on news that the Colombian central bank will buy $20m per day at daily auctions through the first half of the year to address “misalignment of the exchange rate” (Bloomberg & Reuters).

A back-of-the-envelope calculation shows total dollar purchases will equal 1 per cent of GDP. (121 days at $20m, against a World Bank estimate of GDP $242bn in 2008). Read more

The peso hit an all-time low against the dollar during trading today, apparently because of dollar purchases. The current rate is lower even that that which followed the Argentinian debt default and devaluation.