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:
Continue reading Is Peru Firing Shots in the Currency Wars?