Peru's net international reserves, which help the country preserve economic and financial stability, amounted to US$66.452 billion on May 22, Central Reserve Bank of Peru (BCR) has reported.
According to BCR's Weekly Economic Report, reserves were mainly made up of liquid international assets.
This level of reserves is equivalent to 29% of the country's gross domestic product (GDP).
International reserves guarantee the foreign currency availability in unusual situations that might occur due to external shocks resulting in eventual and possible withdrawals of foreign currency deposits and a subsequent capital flight from the financial system.
Also, adequate availability of foreign exchange reserves helps reduce the country-risk with the subsequent improvement of the country credit ratings and better conditions to expand foreign investment in the country.
International reserves are particularly important in a context of globalization of international markets, reduction of barriers to capital flows and volatility of financial, foreign exchange and metal markets.
(END) MVB