The Peruvian sol is one of the most volatile currencies in Latin America. (Infobase)

He American dollar was listed at the close of 3.77 soles on averagewhich implied a variation of 0.34% compared to the previous day’s figure of 3.78 soles on average.

Last week the American dollar records a decrease of 0.25%; but last year it still maintains an increase of 0.08%.

Analyzing this data with those of past dates, he added two successive days in the red. The volatility referring to the last week is obviously higher than the figures obtained for the last year (18.1%), which indicates that it presents more significant changes than the general trend of the value.

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 Previously, 1 cent coins were also minted, but they were withdrawn from circulation in May 2011, while in January 2019, 5 cent coins were withdrawn from circulation.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, recovery showed slow progress due to the crisis still raging in Peruvian homes.

In addition, 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 in between, 2023 seems to be a difficult year on the economic question, however, the latest estimate of the Economic Commission for Latin America (Cepal) in Peru could reach 2.2%.

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