Colombia Assets Sell Off as Lawmakers Try to Block Tax Rises
Bloomberg
10 hrs ago
Oscar Medina and Sydney Maki
(Bloomberg) -- Colombia’s peso suffered the biggest sell-off in emerging markets as lawmakers threaten to scupper the government’s attempt to raise taxes, increasing the chances the nation’s credit rating will be cut to junk.
The peso extended losses Tuesday and has weakened 2.3% this week, the most among emerging market currencies tracked by Bloomberg. Colombia’s dollar bonds due 2051 have slumped by more than 5 cents since mid-April to 93.1 cents on the U.S. dollar, the lowest in seven weeks, and local peso bonds also sold off.