The United States “is ruining” economies around the world, Colombian President Gustavo Petro said on Thursday, given the strong devaluation of the local currency against the dollar as a consequence, according to the president, of Washington’s economic policy.
Petro, the first left-wing president of Colombia, predicted a global crisis due to the “stagnation” of activity and what he called the “gas war” in Europe, after the armed conflict between Russia and Ukraine.
“The United States is practically ruining all the economies of the world”, he launched during a meeting with authorities and communities in the town of Turbo (northwest).
According to Petro, the countries are threatened by recession and “the high interest rate” set by the US Federal Reserve (FED), which attracts “capital from South American countries.”
“In the United States, decisions are made to protect themselves, sometimes without thinking about what will happen through their measures. The economy of Latin American nations is being emptied (…) Our currencies are all falling, not just the Colombian peso”, he added.
Inflation is hitting the economies of the world, mainly those of poor and developing countries.
In the United States, the Federal Reserve (FED) has increased the reference rates to face the rise in prices in a range between 3-3.25%.
As a result, the Colombian debt in dollars could skyrocket and at the same time a capital flight could take place due to the prospect of investors of a higher profit.
In Colombia, the green ticket is quoted at 4,700 pesos per dollar, a figure never seen before. So far this year, the Colombian currency has depreciated by 16% against the dollar, according to estimates by several analysts.
President Petro called on the governments of the region to “establish a common agenda to defend Latin America from the global crisis that is coming.”
(Taken from El Comercio)