Colombia’s national currency is being devalued by more than 20 percent as inflation is climbing and there is a rising risk of political instability, the Central Bank of Colombia (Bolivar) said on Tuesday.
The Colombian peso fell 5.8 percent to 6,719.98 pesos, its lowest since October.
The rate is at its highest level since October 2015, according to the central bank’s data.
The inflation rate in Colombia rose to 18.6 percent in July from 18.5 percent in June.
The inflation rate is still at its record high of 24 percent in April.
The central bank has said it is worried that political instability could lead to inflation and that the country’s inflation rate could rise even further if it does not curb political violence.
Colombia’s inflation rose from 4,835.88 to 5,085.86 pesos per 1,000 people last year, its highest since October 2003, according the central market data.
The central bank said in its weekly report that inflation in Colombia has reached the highest level in the country since October 2016.
The country’s economy has suffered from a recession since 2014, but the rate of growth is currently running at only 6.6%, according to a study by the International Monetary Fund.
The IMF also said in January that Colombia was on track to achieve a budget surplus in 2019-2020, though the government still does not have a fiscal plan.
The IMF has said the country needs to raise at least $20 billion to reach a balanced budget.