BCR: Markets trust Peru's local currency, macroeconomic fundamentals

12:40 | Lima, Nov. 20.

Central Reserve Bank (BCR) Governor Julio Velarde on Friday affirmed that markets trust Peru's local currency and macroeconomic fundamentals.

Likewise, the official mentioned that the public sector registered S/81 billion (about US$22.645 billion) in deposits as at September this year.

"Additionally, we have broad access to external financing both in Peruvian Soles and U.S. Dollars," he said.

Velarde added that most of the Peruvian debt is in Soles and with long terms.

"This is due to the fact that there is confidence in the local currency, the control of inflation, and in the macroeconomic fundamentals of Peru," he indicated.

Reactiva Peru

The BCR governor also emphasized the positive impact of Reactiva Peru Program on credit growth despite the COVID-19 pandemic.

In Peru, credit accounted for 24.3% of GDP.

"We see that in the United States, credit was merely 16.9% of its GDP, 16.7% in Brazil, 12.4% in China, 4.9% in Mexico, and 6.1% in Colombia," he said.

Within this framework, he highlighted that Reactiva Peru was a successful program because a large part of the credits assigned for this initiative were actually placed.

"It is helping a lot to the economic reactivation," he concluded.


Published: 11/20/2020
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