The strong dollar shakes most of the Latin American economy

America Editorial.

The dollar The United States has experienced an extraordinary revaluation in recent weeks, causing many currencies Latin American Its value is being reduced, with inevitable consequences for the public treasury and the local economies of the countries of the region.

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A large part of the products that make up the family basket Latin america They are imported and paid for in dollars, as well as no less important resources than hydrocarbons and raw materials.

Bad post-pandemic

“After one pandemic Where the economy is stimulated comes a great phenomenon called inflation. When central banks start raising interest rates and start seeing a potential recession, growth needs to be stopped,” explains EFE Financial Analyst. Andres Moreno.

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“There has been tremendous growth in the world, and everything has recovered faster than expected. With better interest rates and a possible recession, international capital is becoming more risk-averse and prefers to go to more solid economies. This means that the currencies of emerging countries are devalued.”

Another important factor in the devaluation of currencies against the dollar is the continued interest rate increases by the US Federal Reserve (Fed), the latest on June 16 to 1.50%.

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