Colombia businesses want interest rate cuts to halt appreciation peso

The Colombian association of businessmen wants the country’s Central
Bank to lower interest rates to stop the peso appreciating even further
against the dollar.

According to Luis Carlos Villegas, director of the Nation Organization of Businessmen (ANDI), the current price of the peso is endangering Colombia’s recovery from the financial crisis and may increase unemployment further.

Lowering interest rates could help the peso from growing too strong against the dollar, he says, adding that the current low level of inflation should make it possible to lower the interest rate further.

Villegas supports a proposal by Colombia’s exporters that the Central Bank could massively buy dollars in order to lower the price of the peso.

The association director admits that the peso is not the problem at the moment; the dollar is losing value against many other currencies.

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