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Moody's: Peru's Sol strongest currency in the region in face of pandemic

10:04 | Lima, Jun. 26.

Peruvian Sol has been the strongest currency in the region in the face of the coronavirus pandemic's impact on Latin American economies, said Moody's Investors Service Sovereign Risk Group Analyst Mauro Leos.

He highlighted the performance of the Peruvian Sol because it was the currency that depreciated the least against the U.S. dollar in the region.

At the beginning of the year, the exchange rate was 3.30 soles to 1 dollar, then it rose to 3.60 soles and now stands at around 3.50 soles.

"Peru is a special case in the region because its currency does not fluctuate much against the dollar," he noted after highlighting the work of the Central Reserve Bank (BCR) on monetary policy.

Leos pointed out that, in recent weeks, the return of investment flows to emerging countries, amid a recomposition of portfolios, contributed to less pressure on the exchange rate.

Economic recovery

On the other hand, Leos projected that Peru will experience a faster recovery and will return to the economic levels it saw before the pandemic in the last quarter of 2021, surpassing Brazil, Mexico and Colombia, among others, with growth rates of up to 4% on average for the following years.

(END) DOP/MDV/RMB/MVB

Published: 6/26/2020
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