A key component of Colombia's policy reaction to the global crisis was the flexibility of the exchange rate, said José Uribe, the governor of the country's central bank.

Uribe said the flexible exchange rate was able to act as an effective defence mechanism because currency mismatches were small and inflation expectations remained partially anchored, despite the large shocks to the price of food, energy and raw materials.

He said exchange-rate flexibility meant the central bank could eschew pro