How will President Trump affect the Colombian economy?
Donald Trump has opened a new era of world uncertainty and Colombia will be no exception.
Hit by a tumultuous 2016, both economically and politically, Colombia will see an immediate effect in the fate of the peso, according to The City Paper, a local English newspaper from Bogotá.
After Trump's protectionism threats, currencies throughout the emerging markets dropped in value in the aftermath of the shock voting result on November 8.
On the other hand, Trump has signaled that he wants the dollar to lose value. A weakened dollar, coupled with higher oil prices, could lead to a stronger Colombian peso in the long term, but this won’t play out any time soon.
While Volatility of the peso has become a norm for the peso since oil prices cratered in 2014, a less familiar fear for Colombians could be Trump's protectionism.
Howver, despite Trump's announcement to step out from the Trans Pacific Partnership and renegotiate NAFTA, there has been no indication that Trump would move to disrupt the bilateral free trade agreement between the United States and Colombia, which came into force in 2012.
Though Colombia may not face the ire of Trump directly, how the next four years will play out is anyone’s guess. And the country is linked closely enough to the United States that it will be affected greatly by the still-unknown policies that come out of the White House — as will the whole world economy.
Read the full report on The City Paper Bogotá