The president of Colombia, Gustavo Petro, once again asked the Bank of the Republic to proceed with a more rapid decrease in interest rates.
This call echoes after the end of the year, where the price of the dollar in Colombia reached $3,822 Colombian pesos, and the Colombian peso was positioned as one of the currencies with the greatest appreciation worldwide in 2023.
Petro pointed out that the strong appreciation of the local currency is partly positive, but represents an obstacle to boosting the country’s productive exports. According to the president, the cause of this revaluation is the real increase in interest rates in Colombia compared to the rest of the world. These statements were made through a publication on a well-known social network.
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“The revaluation that the Colombian peso has today, good for some things, bad for unleashing productive exports, has its origin in the fact that our interest rate is increasingly higher in real terms compared to the world,” said the head of state in his account. social network
The president also anticipated that a drop in real interest rates globally is expected, which would increase the gap with Colombia and attract a greater flow of dollars to the country. This situation, analyzed by the Colombian head of state, reflects his interest in adjusting economic policy to favor the entry of capital and improve the conditions of foreign trade.
The president reiterated the need for the issuer to further lower the interest rate in the country. This statement comes after the recent decrease in the market intervention rate by 25 percentage points, currently placing it at 13%. Petro has highlighted that it is essential that the board considers “this new reality” in its future economic decisions.
The president’s insistence on the need for a lower interest rate aligns with his vision of facilitating the economic environment to stimulate growth and investment. It is a measure that can potentially alleviate the cost of credit and encourage economic activity amid global and local macroeconomic challenges.
Finally, it is the board of the Banco de la República that has the final say in these decisions, operating independently of the central government.
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