Dollar closes week at S/ 3.36, highest since 2006

The Peruvian Sol continues to fall against the dollar reaching levels not seen since 2006. Via El Comercio Peru:

The exchange rate rose on Friday to a maximum of more than nine years for purchases of dollars to companies and institutional investors due to increased expectations of a rise in the US key interest rate in December and fears about the health of China’s economy.

The dollar rose 0.21% to S / 3.363 units, matching the level of 7 April 2006. Meanwhile, the parallel exchange rate was S / 3.365.

To mitigate the decline, the Central Reserve Bank (BCR) sold US $ 70 million, at an average exchange rate of 3.3609 units.

During 2015, official sales total US $ 7.569 billion, while the local currency recorded a drop of 12.85%.

“Instability and weakness of China’s economy, the approaching end of the year and the odds for the US Federal Reserve to raise rates, continue to generate demand for dollars from corporate and institutional,” said one agent.

Full Article Here: Dólar cerró semana en S/.3,363, su nivel más alto desde el 2006 | El Comercio Peru

Mapping the Poorest of Peru: Report

 

Peru has made great strides in the fight against poverty. As the economy has grown, many areas have seen a reduction n the poverty rate. Sadly though, some areas remain entrenched in poor economic conditions, and have seen little improvement according to a report published in El Comercio Peru.
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Peruvian Sol falls below $3.25

The dollar continues to rise against the Peruvian Sol, which has declined in value vs. the greenback over 9% this year.

Via El Comercio Peru (Google Translate with editors corrections for clarity – original below.)

 

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Is Peru Firing Shots in the Currency Wars?

The Peruvian Sol

In today’s Gestion is an article regarding comments by Eduardo Amorrortu of Peru’s Association of Exporters, who says the Peruvian Sol needs to fall further in order to remain competitive.

While Brazil and Columbia currencies have fallen considerably more than Peru (Brazil 2.66 vs dollar at the beginning of the year- now 3.51, Columbia then 2377.50 – now 2960.89, both had fallen double digits before as well.)

The Peruvian Sol started the year at 2.985 vs the dollar (at this writing 3.23, having fallen even more since the China devaluation.)

As each exporting nation seeks to gain an advantage (which ultimately no one can,) China has fired the latest salvo in the recent devaluation, but already there are calls to respond:
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Number of Foreigners Coming to Peru for Work Grew 800% in the Last Decade

According to a recent article in Gestion Peru, the amount of foreigners applying to work in Peru has increased by over 800% in the last decade. With economic growth rates that were the envy of most of the world until recent years, Peru has attracted workers from all over the world particularly in other  South American countries, and Spain which is suffering from high unemployment, especially among the youth population.

Via Gestion Peru (Google translate with authors corrections for clarity)
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Peru News Roundup

Peru News

Fresh Peruvian Asparagus & Blueberries will be exported to the US according to a recent article in El Comercio. Both countries are developing systems to mitigate the risk of pests such as the fruit fly and allow more a more open process for exports to the US.
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