Petro’s Pick for Colombia Finance Chief Sends Peso Tumbling (2)

Colombian investors are reeling from the ouster of the man who did more than anyone else to bolster their faith in the country under its first-ever leftist government: finance chief Jose Antonio Ocampo.

The sudden shuffle by President Gustavo Petro sank markets Thursday. The currency slid as much 3.4%, the yield on local peso bonds rose and dollar bonds extended declines for a second day. The cost to insure the nation’s debt against default rose, as did swaps.

Jose Antonio Ocampo

Photographer: Nathalia Angarita/Bloomberg

After some initial turbulence, the longer-term investor reaction will likely depend on whether the new minister, Ricardo Bonilla, can serve ...