Fundamental variables such as Colombia’s current account deficit and fiscal deficit are at unsustainable levels, making Colombia more vulnerable to the actions of the Federal Reserve. As a result, Colombia is one of the countries with the highest devaluation associated with interest rate increases in the United States. To this cocktail is added the timidity of the Central Bank in raising interest rates. The political situation in Colombia generates even more uncertainty.
Fiscal and trade deficits are at unsustainable levels
