Colombia’s central bank has its work cut out for it if officials want to put a floor under one of the world’s worst-performing currencies this year. The Colombian peso offers substantially less carry to investors than the currencies of major neighbors like Brazil, especially once volatility is taken into account. While the central bank has made more hawkish noises of late, suggesting that interest-rate hikes are on the way, that might prove too little, too late for some, leaving the currency at risk of continuing to underperform. With monetary officials across the region from Santiago to Brasilia already tightening, ... (full story)