Devaluation to affect Panama
The financial collapse in the US will, sooner or later, cause a strong drop in the dollar, Carlos Dias warned.
Friday, September 26, 2008
"I don't believe that there will be a total collapse, that will only happen if China, Japan and Saudi Arabia stop buying US Treasury bonds; but if we are projecting that in December the Euro will be worth $1.70, that devaluation will have a very strong inflationary effect here," Dias said.
The finantial crisis in USA will especially hurt Mexico and Central America, whose economies are closely tied to the U.S. market.
The dreaded recession in the US has proven to be a difficult phenomenon to forecast. One year ago most people were predicting that there would a slight recession and that it wouldn't last long.
Key economic indicators show less economic deterioration than other countries of the region.
Outlook Report December 2008 from the Executive Secretariat of the Central American Monetary Policy.
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