Central Reserve Bank (BCR) Governor Julio Velarde on Wednesday informed trade tension between the United States and China is affecting copper price and could impact negatively on mining investment.
"The decline in
copper price is the result of the trade war between the world's two biggest economies (U.S. and China)," Velarde pointed out.
"Until just a few weeks ago, U.S. threats were believed to be merely threats, but nowadays they could become a reality," he warned.
The BCR official went on to add this situation is creating fears of trade conflicts, which may harm the global
economy.
According to him, this trade war is already affecting the expectations for
copper, whose
price is currently below US$3 per pound.
"Hopefully wisdom prevails (in this trade dispute), as it would be a step back," he expressed.
Remarks were made after the presentation of a silver coin commemorating the 100th anniversary of the National Superior Autonomous School of Fine Arts (ENSABAP).
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