The president of the Central Reserve Bank (BCR), Julio Velardehighlighted the stability that the sun has maintained in front of the dollar In recent decades, attributed to inflation control policies, macroeconomic discipline and a high level of international reserves.
“The Peruvian currency is quite stable. We have a floating exchange rate; we were the first country in Latin America to adopt it, in 1990. Countries like Chile and Colombia since 1999,” Velarde said during his exhibition in a new edition of the economic encounter organized by the BCR, in Piura.
The head of the BCR stressed that the Sun has appreciated against the dollar compared to the beginning of the century: “If we compare ourselves with the beginning of the century, the exchange rate or the sun has appreciated. The dollar is worth 1.3% less than at the beginning of the century,” he said.
Velarde contrasted this evolution with that of other currencies in the region: “Other countries such as Brazil, its currency has depreciated about 200%, Mexico almost 100%, Chile almost 70%and Colombia 75%.”
He also explained that part of this stability responds to the support of international reserves. “We have reservations for US $ 86.3 billion that do help us. Part are dollars. We do not issue dollars: we force banks to have 30% of their dollar deposits in the BCR. If we want to have deposits in protected dollars, a part of the deposits has to be in the Central Bank,” he said.
The president of the BCR recalled that these reserves were key to avoiding greater depreciation during the uncertainty of 2021, when the exchange rate rose to S/4.15. “If we had not had those reservations, we would probably not be successful to control depreciation,” he said.
Velarde concluded that the institutional framework and reserves have been central factors for the strength of the Sun against external and internal volatility scenarios.
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