Dollar in Peru: the price closes the week at S/ 3.84

During this Friday’s meeting, the price in US dollars in Peru closed the week lower, as investors continue to assimilate the latest comments from the authorities of the United States Federal Reserve (Fed).

While at the local level, Central Reserve Bank (BCR) of Peru decided to suspend the climb reference interest rate, after the Board of Directors decided to maintain it at 7.75%. In this way, the monetary entity has put an end to 18 consecutive months of upward trend of this indicator despite the fact that the inflation in the country, he still resists going down with conviction.

In such a context, the exchange rate The session ended this Friday, February 10 at S/3.8400 per dollar, registering a decline of 0.60% compared to Thursday’s close when it was quoted at S/3.8630, according to updated data. of the RBC.

So far this year, the greenback accumulates a lead of 0.87% compared to the last price of 2022, at S/ 3.807. Likewise, today (Friday), $389 million was traded in the market.

The price of the american currency on the parallel market or exchange houses is S/ 3.87, while in the windows of the main banks in Peru It is quoted on average at S/3.93.

It should be noted that this dollar price it will remain in this range until the following day at 09:00 next Monday when the Peruvian forex market restarts.

According to RBChe exchange rate the interbank sale closed at S/3.87 per dollar on February 8 this year, 0.5% higher than the price on February 1, accumulating a depreciation of 1.7% from the ground compared to the end of Last year.

So far this year, the RBC he carried out cash transactions on the trading table for 1 million dollars and auctioned foreign exchange swaps, with which the balance of these transactions increased by 111 million dollars.

Regarding the expectations of exchange rateaccording to RBCin January, they are between S/ 3.85 and S/ 3.90 per dollar by the end of 2023 and an expected range between S/ 3.85 and S/ 3.96 per dollar by the end of of 2024.

And if the political and social situation in the country remains calm or regulated, the american currency it could fluctuate this year between S/3.75 and S/4, according to financial analysts.

However, scholars argue that the greenback It has enough space to retrace the highs of S/4.14, reached in 2021, until even making a new additional high in the area of ​​S/4.30 or S/4.35, due to the economic weakening caused by the social situation and the continued rise in interest rates by the United States Federal Reserve.

Meanwhile, Scotiabank projected earlier this month that the price of american uniform It would close at S/3.95 in 2023, and it is possible that this forecast will be revised after the next meeting of the Central Bank of the United Stateswhich will be held the first week of February.

According to Bloomberg’s ranking of major Latin American currencies, the peruvian soil it depreciated -1.4% against the dollar, ranking second to last, only outperforming the Argentine peso.

According to international media, the peruvian soil fell 1% against the dollar in January, despite a 10% rebound in copper, the country’s top export, making it the second worst performing currency among Latin American currencies.

“The Chilean currency continues to maintain its leadership in the Ranking of Latin American currencies against the dollar so far in 2023, with the Mexican peso following suit among the currencies of the largest economies in the region. He peruvian soil it depreciates 1.4% and remains lower with the Argentine peso, which is already down nearly 7% against the greenback,” Bloomberg said.

At the start of the day this morning, the American dollar was negotiated for S/ 3.82 on average, which represents a variation of 0.91% compared to the average S/ 3.85 of the previous session. If we consider the data of the last seven days, the greenback gets a raise 0.21%so that year-over-year there is still an increase of 2.47%.

Regarding the variations of this day compared to the past days, he reversed the result of the previous day during which he experienced a rise of 0.3%, demonstrating that he is not able to establish a trend these last days. With reference to the volatility of last week, was lower than that accumulated last year, appearing as a value with less change than the general trend of recent dates indicates.

Sol is legal tender in Peru since 1991 and replaced the inti, which circulated between 1985 and 1991, at first it was also called “nuevo sol” to differentiate it from its predecessor, but in 2015 it was only called sol.

The origin of the new sun is understood after the world crisis of 1929, which led to a deep economic and monetary crisis in the country, as well as the creation of the Central Reserve Bank of Peru. It was during the first year of Alberto Fujimori’s government that nuevo sol was promoted to balance hyperinflation and reorganize the economy.

After its entry into force, one sol was equivalent to one million intis or one billion “old” soles; currently the currency is divided into 100 cents and its issue is regulated by the Central Reserve Bank of Peru.

Currently, coins of 10, 20, 50 cents, 1, 2 and 5 soles and banknotes of 10, 20, 50, 100 and 200 soles are in circulation. Previously, 1 cent coins were also minted, but they were withdrawn from circulation in May 2011, while in January 2019, 5 cent coins were withdrawn from circulation.

On the other hand, the exchange parity against the dollar and the euro is set daily by the agency in charge. Note that since 2014 the peruvian currency is depreciating.

The year 2022 ended in an eventful way for the Peruvian economy and among the main concerns or challenges for 2023 are high inflation, weak private investment and continued rising interest rates.

Although last year all economic activities that had been affected by the coronavirus pandemic restarted, the recovery showed slow progress because of the crisis still raging in Peruvian homes.

Moreover, in its latest report, the National Institute of Statistics and Informatics (INEI) announced that poverty has increased over the past three years and it probably cannot be reduced this year due to the impact of higher inflation.

With a political crisis involved, 2023 is shaping up to be a difficult year on the economic issue, however, the latest estimate of the Economic Commission for Latin America (Cepal) Peru could grow by up to 2.2%.