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“There can be no impact,” Mr. Zelaya said of the US banking crisis.



Finance Minister Alejandro Zelaya has warned that the US banking crisis will affect El Salvador's economy. /courtesy

Finance Minister Alejandro Zelaya has warned that the US banking crisis will affect El Salvador’s economy. /courtesy

Finance Minister Alejandro Zelaya warned on Tuesday that it was “impossible” that disruptions in the US banking sector would not affect El Salvador’s economy.

“Will it affect our country? It is impossible for us not to.” ,” said the official. of raw materials.

The US banking system was hit hard last week after three financial institutions announced their closures. The last to go bankrupt was Silicon Valley Bank (SVB), the largest bank on the market, he is not one of them, but he has revealed the economic crisis looming over the world’s leading economy.

Will it affect our country? I can’t help but make an impact. Global financial markets are starting to move and some are already talking about a global crisis very similar to the 2008 crisis.
Alexander Celaya
Minister of Finance

Analysts don’t foresee a financial crisis like the one in 2008, but at the time it was caused by the housing bubble. The Federal Reserve Board (Fed), the central bank of the United States, has announced a rescue package and launched an investigation to protect the savings of three bank users.

“Traditional recipe”.

The tech sector has responded to inflation with massive job cuts, and the Fed continues to reform interest rates to keep inflation in check. In other words, raise interest rates to make money more expensive and consume less.

Zelaya didn’t agree with the Fed’s “traditional recipe.” Well, I think it’s about productivity.

Officials cited the fact that unemployment is “more voluntary” in the United States and that various sectors, particularly services and agriculture, cannot find labor available for their activities and must import it. mining has also been suspended and “is a bit lacking in innovation”.

“I think we have to rethink the real solution to the crisis,” he argued. “When you do bailouts, you have to remember that you don’t have money. To have money, you have to have a growing economy. Because there is no money, it will be printed and it will be inflationary,” Zelaya argued, which goes against the policy of adjusting interest rates.

Source: Diario.Elmundo

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