Colombian President Gustavo Petro says countries are threatened with recession due to the high interest rate set by the US Federal Reserve.
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Colombian President Gustavo Petro
On Thursday, Colombian President Gustavo Petro accused the United States of destroying world economies by raising interest rates.
“The United States is destroying virtually all economies in the world,” Petro said during a meeting with officials and citizens in the city of Turbo.
He added: “Countries are threatened by recession and the high interest rate set by the US Federal Reserve, which attracts the capitals of South American countries.”
Petro warned that “the United States is making decisions to protect itself, regardless of what their actions will entail”, continuing: “The value of our currencies is decreasing, not just the value of the Colombian peso.”
Colombia’s first left-wing president has suggested a global crisis for several reasons, including the “gas war” in Europe, as he called it, in the wake of developments between Russia and Ukraine.
In an attempt to fight inflation, the US Federal Reserve has raised key interest rates 5 times since last March, from 0.25% in March 2020 to around 3%.
Since the beginning of this year, the Colombian currency has depreciated by 16% against the dollar, to equal one dollar and 4,700 pesos, which is not unusual in the country.
