Peru: Country risk reduced to 165 basis points

Photo: ANDINA/Melina Mejía

Photo: ANDINA/Melina Mejía

08:03 | Lima, Feb. 11.

The EMBIG Peru decreased 2 basis points to 165 bps from January 31 to February 7, 2024, the Central Reserve Bank (BCR) has reported.

Meanwhile, the EMBIG Latin America decreased 6 bps to 386 bps in the same period.

According to the BCR, this was consistent with the downward trend in the monetary policy rates of the region's economies.

The country risk measures the ability of a country to meet its financial obligations and the implicit political risk and, based on that, receives an international credit rating.

The main consequences of a high country risk are a drop in foreign investment and lower economic growth, which could lead to unemployment and low wages.

This is an orientation index for investors, because it indicates the risk of doing business in a country is more or less high. 

It should be noted that the higher the risk, the less likely projects obtain a return in accordance with funds; and the lower this index is, the more attractive the country will be to investors. 

Publicado: 11/2/2024