Peruvian currency is considered "new Dollar" due to strength

Photo: Courtesy

Photo: Courtesy

09:30 | Lima, Sep. 16.

The Peruvian Sol is being considered the new Dollar given its strength and stability in various international markets, Universidad del Pacifico Graduate School economist Melvin Escudero reported.

"It is a comparison that is taking place in the international market. Many economists are using that term because the (Peruvian) Sol has shown greater stability in recent months and years than any of the other currencies in this region," he told Andina news agency.

The economist said that, in terms of volatility, Peru's currency registered ranges of rises and declines lower than those reported for other currencies.

"During the past three years, in addition to the pandemic, the issue of the inflationary outbreak, the rise in interest rates in the region and globally arose," Escudero explained.

"All this prompted considerable devaluations in the leading currencies of the region (those of Chile, Mexico, Colombia, and Brazil). However, in the case of the Peruvian currency, the devaluation was the lowest," he added.

Thus, Escudero mentioned that, despite political noise, Peru has maintained —from an investors' perspective— a level of prices.

The Peruvian Sol is one of the few currencies in the region that instead of devaluing (losing value), it has appreciated (gained value).

"These characteristics make it the most stable currency in the region," Escudero noted.

However, he specified that the Peruvian Sol is not replacing the U.S. Dollar.

"The Peruvian economy has neither the international presence nor the institutional stability that the United States has," he pointed out. 


Published: 9/16/2023