Colombia’s Peso Is Up 19% This Year as a New President Meets a Split Central Bank

The Colombian peso surged 19% this year amid a new president and a split central bank, according to Superintendencia Financiera data. The official market rate stood at 3,128.65 pesos per dollar as of August 16, 2026, marking a 16.7% drop from the start of the year and a 22.2% decline over the past year, with July's drop being particularly notable. The peso has become one of the world's best-performing currencies in 2026, driven by a central bank that continues to tighten monetary policy while regional peers ease rates.

Banco de la República held its policy rate at 12% on July 31, 2026, but the board voted 4-3 to maintain the rate, reflecting a narrow hawkish bias. The rate had been raised from 10.25% in February 2026 to 12% by July 1, 2026, tightening into a strong currency against the regional trend. The predecessor central bank's inflation projections placed 2026 inflation near 6.9%, double the 3% target, with services and administered price indexation sustaining pressure.

New President Abelardo de la Espriella took office on August 7, 2026, inheriting a challenging fiscal situation and fragile public finances. The peso's rally, while cheered by markets, faces its first test under the new leadership. The strength of the peso could complicate the government's promise to revitalize industry, as exporters face the issue of fewer pesos earned for every dollar sold. The next critical juncture will be the September BanRep meeting, where the central bank's policy path could become clearer.