One of the big questions is whether Julio Velarde will continue to lead the Central Reserve Bank (BCR) for one more period, given the role of stability and confidence that it represents for the Peruvian economy. Although he previously indicated that, if they proposed it to him, “out of courtesy he would at least think about it,” yesterday he hinted at a message that opens the possibility of his permanence in office.
“I would be happy if I left, but I would also be happy if I stayed. I would have to think about it at that moment,” he said during an interview with La Voz de Argentina. In addition, he considered that it is most likely that his successor will be named.
Velarde, Peru’s most respected official and who has been in office since 2006, also spoke of the importance of the autonomy of an institution to maintain monetary stability in the country.
“Isolating the Central Bank from political pressures is important,” he stated and stated that this independence allows for better results for inflation, as well as more stable economic growth.
In that sense, he considered that entities like the one he represents should not finance the government, since in the long run this allows prices to drop. “The fact that the exchange rate does not depreciate against the dollar partly responds to lower inflation,” he added.
POVERTY
Julio Velarde pointed out that this year the country will grow between 3.3% and 3.4%, but recalled the increase in poverty as a result of the pandemic.
“The confinement meant that many informal companies and small businesses could not sell and they literally ate up their working capital, they became poorer. And from there it is not so surprising that left-wing candidates emerge in Peru, Colombia and even Chile, which was not expected before,” he highlighted.
For this reason, he indicated that reforms need to be made and education promoted.
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