Colombia’s currency woes don’t seem to be easing despite reassuring words from Finance Minister José Antonio Ocampo to calm markets.
Colombian President Gustavo Petro’s affirmation that the “US ruins world economies” was met with a swift rebuttle from the US government officials.
The Colombian peso continues to devaluate at a historic rate, setting off the alarm bells among investors that the economy is in peril of entering recession.
President Petro’s questioning of the reasons behind the Central Bank’s interest hikes and proposed tax on capital outflows once again devalued the Colombian peso to the USD.
The Colombian peso is breaking historic highs to the US dollar and rapid devaluation that may signal a flight of capital with the recent election of Gustavo Petro.
Global markets are reacting to the election victory of Gustavo Petro and first leftist government in Colombia.
As global demand for commodity exports surge, the Colombian peso hit a nine month high to the U.S dollar and part of a Latin America-wide currency rally.
Global currencies are under pressure with rising inflation, supply-chain disruptions and fears of an energy crisis should Russia invade Ukraine.
International trade tensions and Turkey’s Lira crisis is hurting the Colombia peso at a time in which the new government of Iván Duque needs oil revenue and currency reserves.