THE AMERICAS

Currencies Going South

As geopolitical strife intensifies south of the border, currencies are devaluating in Latin America, hitting new lows.

The Chilean peso was down 1 percent against the dollar – trading at 800 to the dollar from 630 a year ago – and 15 percent against the dollar over the last year. 

The Columbian peso was down 0.7 percent, nearing a record low, and 10 percent against the dollar over the last 12 months.

The Brazilian real dropped almost 10 percent over the last year, in an economy expected to only grow 1 percent this year.

TREND FORECAST: Socioeconomic and political conditions throughout Central and Latin America will worsen.

Mexico lowered interest rates for the third consecutive time in an effort to boost its economy, which is expected to contract 0.1 percent this year. 

Much of the global debt is dollar based, so the lower these currencies go, the larger their debt burden grows. 

Again, as noted in our “Human Waves” Top 10 Trends of 2019, as economies erode further, poverty increases, violence intensifies, and refugees will flee north for improved living conditions. 

This is a trend that will intensify globally as nations fall deeper in recession/depression and civil and regional wars.