The recent global health crisis Coronavirus (COVID-19), which has taken away thousands of lives across continents, is not only affecting humanity, but it is wrecking on the world economy. Specialists have been comparing it with the 2008-09 global financial crisis downturn. The virus has already impacted drastically some industries that will have to deal with the repercussions for the upcoming years.
The oil industry, perhaps, is one of the most affected industries in the world. Global oil consumption is facing its biggest fall in history due to a temporary ban on travels, factory shutdowns, quarantine and other measures to prevent and contain the virus. The petrol price has dropped significantly, affecting the Colombian Peso (COP) versus the United States Dollar (USD); which consequently affect other Colombian companies such as trade, transport and supply. Today, $1 USD equals $4,056 COP, over 1/3 of the regular dollar price in Colombia.
In order to recover promptly from this economic crisis, companies should continue working during this pandemic to limit the economic consequences post crisis. Moreover, companies have to optimize their costs, find leverage to increase sales, develop sales internationally and take the currency exchange rate as an opportunity to develop in international markets.
At KROM, we are able to help our customers attain their objectives due to our management experience with international networks in Europe, Asia, Middle East, North America and South America. Also, our experience in company restructuration and cost optimization will be crucial for companies to outgrow this pandemic, anticipate the actions to gain market advantage and become competitive again.