The United States is ruining economies around the world by raising interest rates, Colombian President Gustavo Petro said on Thursday. “The United States is ruining practically all the economies in the world,” he said during a meeting with officials and residents of the city of Turbo (northwest).
“The United States makes decisions to protect itself, sometimes without thinking about what its actions will entail. The economy of Latin American nations is emptying (…) Our currencies are depreciating, not just the Colombian peso, ”she warned.
“Gas War”
Colombia’s first left-wing president, Gustavo Petro, predicted a world crisis, among other things because of what he called the “gas war” in Europe, following the conflict between Russia and Ukraine.
To fight inflation, the Fed has raised its benchmark rates five times since March, taking them from the 0-0.25% range they’ve been in since March 2020 to 3.00-3.25%.
As a result, Colombia’s dollar debt could soar and capital flight could ensue due to the prospect of higher investor profits, analysts say.
Since the beginning of the year, the Colombian currency has depreciated 16% against the dollar. In Colombia, a dollar is worth 4,700 pesos, something never seen before.
Source: BFM TV
