The ‘perfect storm’ that made the dollar soar

According to Luis Fernando Mejiadirector of Fe developmentthe depreciation of the dollar in the countries of America has averaged 5.4% in the second half of the year, while that of Colombia has been 12.8%, more than double what was observed in the rest of the year. the countries of the region.

“Despite that there international factors explaining the loss of value of our currency, there are also some local behaviors that cause the currency to have this rise, such as fiscal risk, which is not a new phenomenon, and the government announcements in terms of the mining energy sector,” explained he out Mejia to EL HERALDO.

He added that this has raised concerns about the durability of external financing of the country’s current account and capital account.

Meanwhile, Henry Amorocho claimed that within the country’s internal phenomenon, the statistical figures of the high balance of payments deficitthis is the highest in Latin America (6.2% of GDP).

He indicated that the data on the budget deficit, the annual inflation until September (11.44%) and the rise in the interest rate of the Bank of the Republic up to 10%.

“Colombia is also not helped by data from monetary povertythe degree of inequality, all this does not show a quick and short solution to the economic situation of the country,” said the analyst.

On the other hand, Joseph Armando Hernandezdirector of the Finance and International Trade program at La Salle University, argued that governments that call themselves progressives are taking measures that do not obey orthodox economic policies.

“On the contrary, measures such as publishing titles of the National treasure buying land or proposing new retirement plans or announcing tax suspensions, raising expectations for investors, who normally prefer to resort to dollars in times of global uncertainty,” he said.

Source: El heraldo