The failures of Silicon Valley Bank (SVB) and Signature Bank in the United States have generated uncertainty in the world's financial markets. However, in this context, the Peruvian Sol (S/) became the currency with the best performance in the region.
"Regarding the exchange rate, I want to mention that the best-performing currency after the Silicon Valley Bank bankruptcy was the Peruvian sol," he said.
In this regard, Perea underlined that the day before the collapse of Silicon Valley Bank, the Peruvian currency posted a 0.2% appreciation against the U.S. dollar, while the Chilean peso experienced a depreciation (3.6%), as well as the Mexican peso (2.6%). and the Colombian peso (1.0%).
The economist indicated that so far this year the Peruvian currency has appreciated 0.8% against the U.S. dollar.
Macroeconomic strengths
In this sense, Perea explained that this is possible because Peru continues to exhibit strengths on the macroeconomic side, which serve to provide responses in times of crisis.
"The fact of having very low debt levels stops Peru from approaching international markets to request financing. So, these advantages make it possible for the country to sail through troubled waters," he underlined.
The BBVA Research official noted that, beyond the initial impacts, these strengths make it possible to contain the pressures on the exchange rate and the rise in risk indicators.
In this context, he commented that local strengths have combined with the rapid actions taken by the
Federal Reserve in the United States.
"The situation was softened due to the quick actions taken by the Fed. We can discuss later if this is going to create perverse incentives in the medium term, but in the short term, it is a firewall that limited the possibility of contagion," Perea added.
(END) RGP/JJN/RMB/MVB
Published: 3/23/2023