The problems of Ecuador´s neighboring countries

Image: Expreso

The discussion about the benefits of devalue turns sterile when the generated crisis due to the drop of materials affects countries that don´t have their own coin as much as the ones that do have it. To display our neighbors, which have undervalued their coin in over 30% in a single year, but there are signs of high inflation and lack of investment.

The Central Bank of Perú raised its interest rate on january because the advanced inflation pressed a rise on inflationary expectations of the economic agents above the target range level, between 1 and 3 percent.

The inflation annualized to january was located in 4,61% because the price of some foods rose and also the price of the electricity tariffs.

“The expectations of the inflation kept rising up in late january: fot this year they are located in 3,5% and for the next year they will also exceed the target range”, said Francisco Grippa, principal economist in BBVA Research Perú.

In Colombia the foreign equity funds decreased their investments on internal public debt on january for the first time in six months, in 1,1 billion Colombian pesos (324 million dollars), revealed digits from the Ministerio de Hacienda.