Tag Archives: dollar

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

Peruvian Sol Breaks Psychological $3.10 Barrier, Inflation in Appliances

Slopes of the Western Andes

The rapid descent of the Peruvian Sol is affecting consumers in Peru. While the US is seeing official rates of inflation below the Fed target of 2%, Peru is paying a lot more for imported products including appliances because of the decline in the national currency the Peruvian Sol.

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Why the Peruvian Economy Matters to the World

Machu Picchu Peru

 

As I first began to think about this post I imagined that the line “Why the Peruvian economy matters to the world,” would be considered by some in high finance circles to be somewhat comedic relief, maybe like a night out at the improv comedy club for Keynesian economists and bankers.

It’s not to say that Peru’s economy is so large or anything like that, being just 51st in nominal GDP worldwide,  (source) but rather that its run to glory is so typical of what has happened to little countries all over the world since 2008. As the “free” Federal Reserve dollars sloshed around the planet searching for anywhere to grow faster, faster, those same dollars found a happy home in many emerging and smaller nations. Peru by itself is just one of the many, but the sum total of debt between all those “little” emerging nations is a significant sum that could easily cripple the banking system.

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Chris Martenson Visits Peru

Chris Martenson of Peak Prosperity (peakprosperity.com) recently visited Lima to present a seminar with well known financial guru Robert Kiyosaki (Rich Dad, Poor Dad) entitled “The new global scenarios that will define the Peru of the next 20 years”, organized by the University San Martín de Porres and Bu$iness Insiders.

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Peruvian Sol Reaches S./3 vs $1 USD

Today, the Peruvian Sol fell to S./3 to the US dollar at least for bank customers. In what has been an almost daily event, the Central Bank has been selling dollars to stop the fall of the Sol.

From El Comercio (Via Bing Translator)*

The price of the dollar is appreciating in the foreign exchange market and your (the) quote already reaches the S/.3,00 on the banks of the city since this morning. On the other hand, the Bolsa Valores de Lima (BVL) (Lima Stock Exchange) record positive indices at the opening of business.

Continue reading Peruvian Sol Reaches S./3 vs $1 USD