The most undervalued currencies extrajeras are those of Colombia, Mexico, Peru, Uruguay, Brazil, Argentina, to name a few
While the growing appreciation of the dollar, the official currency of the United States, continues to reach highs and historical values, nervousness seizes many Latin American economies, mainly in Colombia, where the exchange rate against the weight recorded a record 3,000 for 1.
In Panama, a dollarized economy, economic analysts predict other effects. The depreciation of foreign currencies against the dollar, according to experts interviewed by The Star of Panama, affecting an area of vital importance for the country, service to the exports of other countries that go through our territory.
The economist Raul Moreira explained that a alzista dollar against the currencies of the region, local products become more expensive. ‘Exports suffer because they lose competitiveness, “said Moreira.
We, however, said that contrary to what happens with exports, imports of the region may experience a change upward.
‘If there is no control will increase imports because the products become cheaper outside’. This phenomenon adversely affects local production, he said.
Like Moreira, economist Fernando Aramburu P., Aramburu Porras y Asociados, believes that “definitely, devaluation or loss of relative value of the currencies of some Latin American countries like Brazil, Colombia and Mexico, among others, against the dollar It implies a rise in exportable goods and services from countries that use the dollar as currency, as Panama; and thus impacts the competitiveness of our products compared to other countries, which may affect the volume of exports of the same ‘.
On the other hand, Aramburu added that “this also means lower prices for goods such countries vis a vis (face to face) to the dollarized world, so it becomes more attractive products imported from those countries’.
‘In the case of Panama, as a diversified economy mainly services, estimates that the impact will be less than in the export economies of products that have greater sensitivity to price variations, “Aramburu said.
However, against this backdrop, experts recommend to the respective authorities to establish controls, since when the costs of foreign products lower their value and then rise again ‘are violated’ and Panama not have sufficient allowances to cover losses.
However, for the economist Aracelly De Leon, ‘anything is mere speculation. We must await developments, “he says.
Note that, like Panama, El Salvador and Ecuador, whose economies are dollarized, the impact is different from other countries in the region. “
According to an analysis of the firm J.P. Morgan, one of the factors behind the trend of strengthening of the dollar against emerging Latin American currencies was the decision to Beijing (China) to devalue the yuan last week on three occasions.
The most undervalued currencies extrajeras are those of Colombia, Mexico, Peru, Uruguay, Brazil, Argentina, to name a few.
Ernesto Chong de León, Ernesto Emilio Chong Coronado
Categorizado en: News global
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