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After years of presenting the same idea, this time the proposal to change the Colombian peso to the dollar strengthens in the midst of the pandemic.
Experts and analysts assure that this would be one of the possible solutions to the crisis caused by the coronavirus.
That’s why it’s back in place amidst countless quick-fixes to avoid a recession.
Change Colombian peso to dollar
But how would this change solve the underlying problem?
Economist Steve Hanke assured that the Colombian dollar “would find the antidote it so badly needs to protect its financial stability,” according to El Tiempo.
“In addition to being a destructive destabilizer, peso is a long-term loser. That’s why Colombians prefer dollars,” reads a text published by the expert’s Forbes magazine.
Instability, it seems, is the weak point of Colombian modena.
According to the economist, “the Colombian peso goes up and down like a yo-yo, but in the long run it tends to weaken.”
However, the technical director of Banco de la República, Hernando Vargas, does not think the same.
He told Blu Radio that such a change would be inconvenient for the country.
Moreover, he said that the economic crisis in Colombia is not as serious as it is believed.
“Dollarization has benefits, but it also has costs. And in our circumstances, those costs clearly outweigh the benefits,” he said.
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