President Gustavo Petro stated that the strong revaluation of the Colombian peso, with the dollar at $3,578 on Tuesday, stems from the Banco de la República's interest rate hike. He noted it cheapens external debt and imports but raises export costs. Petro warned it could undermine poverty reduction efforts.
The dollar dropped to $3,578 in Colombia on April 15, a low unseen since 2021. President Gustavo Petro addressed this 'immense revaluation' of the peso, blaming the 'substantial increase in the interest rate set by the Banco de la República'.
"The effort to raise Colombians' incomes, which substantially reduces poverty, could be lost if those incomes are spent on cheapened imported goods," Petro stated. He added that curbing inflation means lowering prices of locally produced foods. "It's not easy, but it's my challenge in these months," he said.
Experts cite other factors: oil prices hit by geopolitical conflicts and an April 10 decree limiting AFP foreign investments to encourage capital repatriation. Fiscal variables, interest rates, political environment, and external trade prices also play a role.
Petro confirmed he will present a new financing law due to a Constitutional Court ruling.
