The Peruvian sol reversed its losses and recovered after Congress passed the vacancy motion against the president Peter Castillo, who dissolved parliament, but was later removed from office and arrested in absentia.
(See: Pedro Castillo was arrested for the crime of rebellion).
The currency had previously suffered the biggest drop since July 2021 when the Constitutional Court called Castillo’s announcement a Coup attempt.
At the end of this Wednesday, December 7, the sun closed near its highest level since June 2022.
Peru experienced a very chaotic Wednesday in political terms.
(See: Crisis in Peru: Colombia condemned “every attack on democracy”).
On the afternoon of this Wednesday, December 7, Castillo was preparing for the vacancy motion against him in Congress.
But before that appointment, he surprised with a speech in which dissolved the legislature temporarily and declared a “exceptional emergency government“.
Castillo’s justification for his decision was “the disastrous obstructionist work of the majority of congressmen“.
(See: What comes after the political crisis in Peru and the arrest of Castillo?).
However, the decision he made was not supported by his cabinet and his ministers resigned. Citizens were also against it.
Hours after the announcement, Congress removed Castillo for “moral incapacity,” the former president was arrested for rebellion, and Vice President Dina Boluarte was decreed to assume the Presidency, which she did.
PORTFOLIO AND BLOOMBERG
