Avoid borrowing in times of crisis and dollar rises
2 min read
The dollar reaching historical prices of $4,200 pesos, borrowed money becoming more and more expensive, with reference rates of 7.5%, the maximum in six years, and skyrocketing inflation of more than 9% annualized. All this affects the pocket of Colombians.
Orlando Santiago Jácome, manager of Fénix Valor, explains that the whole world is facing an imminent recession, this is not just a Colombian issue, “Not only are the economies not advancing, but they are decreasing and apart from everything there are price increases” .
The inflation that will remain high in Colombia for at least 2 more years. This low economic growth is accompanied by high prices for the products and services we consume.
With a readjustment not seen in 24 years, the Banco de la República increased interest rates, placing them at 7.5% to try to curb these high prices. This means that all credits will become more expensive, so be careful because this is not the time to borrow money or buy with a credit card.
“As far as possible, avoid indebtedness, and we are not generally on vacation, happy spending, because the financial cost of obligations is at one of its highest moments in almost 13 years,” recommends Orlando Jácome.
Our Colombian peso is devaluing more and more, since the dollar continues to rise considerably.
Today, the dollar reached a maximum peak of $4,208, a situation that hits all Colombians without exception. The manager of Fénix adds, “Even the farmer who is far away in the rural area realizes that the inputs with which he sows have risen in price and the explanation given by those who sell him that input is that they are imported goods. , well basically with a high dollar paying more”.
According to Jácome, he clarifies that the depreciation of the Colombian peso means that in less than a month we have become 10% poorer than the rest of the world. As the dollar continues to strengthen, Colombians will have to spend more to buy imported goods.
Given this economic imbalance in Colombia and the world, such as the maximum peak of the dollar, the depreciation of the peso and, in addition, the high inflation that has affected the pockets of Colombians in the country and in the world, an economic transformation system such as the IRAIC is needed. which unifies the economic schemes through measures that adjust the high imbalances in the market in order to generate productive and functional economic development for sustainable business development, providing benefits for the nation. Posted by Iraic.info, a news and information agency.
