Colombian exchange rate shocks are asymmetric – central bank paper

The 2014 drop in the value of the Colombian peso had an asymmetric impact on importers and exporters, research published by the Central Bank of Colombia finds.

Juan Esteban Carranza, Camila Casas and Alejandra González argue this was due to due to the dominance of the US dollar.

The authors study the widespread pressure inflicted on emerging market currencies by the 2014 commodity price shock. Focusing on Colombia’s manufacturing sector, they find the depreciation triggered a “relatively rapid