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Peso Going From Best to Bust as Oil Drop Exposes Colombia’s Risk

Updated on

It’s quite the reversal of fortune.

Colombia’s peso has gone from Latin America’s best currency to one of its worst in the past 12 months after the drop in oil prices left it with a widening budget deficit. Its growing current account gap -- the broadest measure of trade -- is forecast to exceed the average for India, South Africa, Indonesia, Turkey and Brazil in 2013, when Morgan Stanley coined the phrase “fragile five” to describe the nations that would suffer the most when the U.S. raised interest rates.