the charge of the Colombian president against the United States

According to Gustavo Petro, countries are threatened by recession and “the high interest rate” set by the US Federal Reserve (Fed), which attracts “capital from South American countries”.

The United States is ruining economies around the world by raising interest rates, Colombian President Gustavo Petro said Thursday. “The United States is practically ruining all the economies of 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 measures will entail. The economy of Latin American nations is emptying (…) Our currencies are depreciating, not only the Colombian peso “, he warned.

“Gas War”

Colombia’s first left-wing president, Gustavo Petro predicted a global crisis, among other things due to what he called the “gas war” in Europe, following the conflict between Russia and Ukraine.

To fight inflation, the Fed has raised its key rates five times since March, taking them from the range of 0-0.25% in which they have been since March 2020, to that of 3, 00-3.25%.

As a result, Colombia’s dollar debt could skyrocket, and capital flight could take place due to investors’ prospect of higher profit, analysts say.

Since the beginning of the year, the Colombian currency has depreciated by 16% against the dollar. In Colombia, a dollar is worth 4,700 pesos, something never seen before.

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