"The evolution of the dollar has to do basically with what has been happening with this currency in the international market, following a period of previous years of a strong dollar," he added.
The BCR official pointed out the currency basket index shows that currencies on average have appreciated by 9.6% against the U.S. dollar this year.
"Some currencies have strengthened more, such as the euro, for instance, which has appreciated 12.7%, or the Brazilian real, which gained 13.3%. In our case, the Peruvian sol's appreciation has been lower, around 7%," Armas indicated.
"Part of this dollar weakness is related, among other factors, to expectations of a reduction in the interest rate by the U.S. Federal Reserve. This is also linked to the fact that recent data have shown a less dynamic and weak labor market in the United States, which is why a rate cut is expected," he added.
The BCR official stated that the decline in the dollar exchange rate could increase the population's purchasing power to buy imported goods.
"In terms of import prices, a reduction has indeed been observed, but this has been happening since last year, as we must remember that global inflation affecting our economies began with a sharp rise in international prices of fuels and grains—basic inputs for food products such as corn, wheat, soybean oil, etc.—as well as the full range of fuel derivatives," Armas said.
"So, that imported inflation, after reversing, is now leading to declines in import prices," he explained.