Colombia cuts in 2009 budget because of expensive peso

 

The announcement was made Saturday after several sectors had asked the government to declare an economic emergency to fight the consequences of the expensive peso.

Last Friday the peso reached a nine year record high against the dollar after the U.S. currency dropped further, because of the high oil price and disappointing unemployment figures from the world’s largest economy.

The government will propose the 2009 budget to Colombian Congress on July 29. The draft budget is now 136 trillion pesos (US$75,6 billion).

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