Latin America

Judi Lynn

(160,483 posts) Mon Dec 15, 2014, 04:27 AM Dec 2014

Ruble Slide Mimicked in Colombia as Losses Unnerve

Ruble Slide Mimicked in Colombia as Losses Unnerve
By Andrea Jaramillo and Christine Jenkins Dec 15, 2014 1:53 AM CT

As the foreign-exchange market stands transfixed by the ruble’s collapse, there’s another currency whose losses are almost as shocking.

Colombia’s peso is the only major exchange rate other than the ruble to have weakened more than 20 percent since mid-year, tumbling last week to its lowest level since April 2009. The cost of options protecting against further declines, relative to those hedging against an advance, climbed this month by the most since June 2013, data compiled by Bloomberg show.

The currencies of energy producers such as Russia and Colombia are being undermined by the 41 percent slide in oil this year. After months spent welcoming the weaker peso as a potential boost to trade, Colombian Finance Minister Mauricio Cardenas said Dec. 11 that volatility poses a danger to the economy, leading to speculation the central bank will announce measures to steady the exchange rate at its policy meeting on Friday.

“It’s getting to a level that’s not very comfortable and there’s starting to be a bit of a concern,” Andres Pardo, the head of economic research at Corporacion Financiera Colombiana SA in Bogota, said by phone on Dec. 12.

More:
http://www.bloomberg.com/news/2014-12-15/ruble-slide-mimicked-in-colombia-as-losses-unnerve-currencies.html

3 replies

= new reply since forum marked as read

Highlight:

Ruble Slide Mimicked in Colombia as Losses Unnerve (Original Post) Judi Lynn Dec 2014 OP

Only locally self-sufficient economies can avoid these crashes. bemildred Dec 2014 #1

you heretic! You spit on the Wholly Globalism? Demeter Dec 2014 #2

I've been there since the 70s. bemildred Dec 2014 #3

bemildred

(90,061 posts)

1. Only locally self-sufficient economies can avoid these crashes.

Reply to Judi Lynn (Original post)

Mon Dec 15, 2014, 04:37 AM

Dec 2014

The sort of global high-speed resource intensive "just-in-time" economy we have now is brittle and prone to failure.

Demeter

(85,373 posts)

2. you heretic! You spit on the Wholly Globalism?

Reply to bemildred (Reply #1)

Mon Dec 15, 2014, 07:45 AM

Dec 2014

Welcome aboard!

The other alternative is a regional alliance, such as South America is forming, to keep out the Anglo-Zionists, as another observer calls them, and to complement each other with enough trade to make up for local deficits in raw materials and labor WITHOUT colonialism or profiteering...

bemildred

(90,061 posts)

3. I've been there since the 70s.

Reply to Demeter (Reply #2)

Mon Dec 15, 2014, 07:55 AM

Dec 2014

It's been a long depressing ride too.
The thing is, it's a dumb idea, globalization, it's top-down thinking.
But it's a bummer to realize we are along for the ride while it collapses of it's own hubris and folly.

Reply to this discussion