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

The price of US dollar andn Peru closed lower this week amid expectations of interest rate hikes in the US, following strong economic data there and statements from Federal Reserve officials.

While at the local level, fitch reviewsthrough a new report on the expectation of Peru, pointed out that the events of social disorder in the country this year would experience a long period of political uncertainty, which would weaken growth prospects and you can test the fiscal resilience.

In this context, the exchange rate The session ended this Friday, February 17 at S/3.8460 to the dollar, registering a decline of 10% compared to Thursday’s close when it was quoted at S/3.8500, according to updated data from the Central Reserve Bank (BCR) of Peru.

So far this year, the greenback accumulates a 1.02% lead over the last price of 2022, at S/3,807. Additionally, today (Friday), $206 million was traded in the market at an average price of S3,841 /.

The price of the american currency on the parallel market or in exchange houses, it is S/3.86, while at the counters of the main Peruvian banks, 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 Bloomberg Online, last Thursday the peruvian currency it rallied and, along with the Mexican peso, led the gains among emerging currencies in the region and emerging countries.

He sun of peru It continues to maintain a negative discount in this year 2023, but at the end of the session it is the currency which posted the best performance among the 23 emerging currencies monitored by Bloomberg.

In this sense, the peruvian soilo It is already depreciating less than the Colombian peso after the Colombian currency’s sharp drop last Wednesday, while the Argentine peso is depreciating 0.1% against the dollar so far in 2023. The Chilean peso remains the best-performing currency so far this year, followed by the Costa Rican colon and the Mexican peso, Bloomberg Online pointed out.

During the last day, the American dollar was listed at the close of S/ 3.83 on averagewhich represents a decrease of 0.51% compared to the price of previous daywhile it amounted to 3.85 soles on average.

Looking at last week’s data, the American dollar accumulates an increase of 0.27%therefore, year-over-year, it still maintains a rise of 4.32%.

Compared to previous days, it ended two consecutive sessions with a positive trend. The volatility figure was 16.65%, which is slightly lower than the annual volatility figure (17.92%), showing that it has been acting more stable than usual lately.

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 rise 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; Today the currency is divided into 100 cents and its issue is regulated by the Central Reserve Bank of Peru.

Coins of 10, 20, 50 cents, 1, 2 and 5 soles and banknotes of 10, 20, 50, 100 and 200 soles are currently 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%.