Russia’s invasion of Ukraine has had immediate effects on the world economy. Yesterday, Thursday, February 24, the dollar rose, the shares of the world’s main stock markets plummeted and oil rose above US$100.
In this regard, Edmundo Lizarzaburu, professor and researcher of the Administration and Finance degree at ESAN University, indicates that as expected, the financial markets have reacted in less time, that is, with a strengthening of the dollar, which generated a rise of the exchange rate, going from S/ 3.74 to S/ 3.81 in less than two days.
Regarding the product market, Lizarzaburu points out that the importance of Ukraine is more than expected, so oil will break the US$ 104 and its level would vary considering variables such as the response of the US, NATO and the duration of the conflict.
“Which would make oil (an input of many derivatives, such as gasoline) rise to levels of US$120 – US$150, of course, if the situation worsens, the value could be higher,” he comments.
With regard to grains and some minerals, the specialist points out that these have become between 2% and 8% more expensive in less than 48 hours.
“This could worsen based on the responses from the United States in the coming days, but, ultimately, this increase will impact the prices of the family basket, which would accentuate the inflation that has been occurring. In short, the products are going to get more expensive, the cash flow will have to be adjusted even more”, he says.
Effects of the war in Ukraine on Peru
In detail, according to the ESAN teacher, the economic consequences of the conflict between Russia and Ukraine would materialize in:
- Increase in fuel, due to the rise in oil.
- Rise in products from the family basket.
- Action of the BCRP to curb the potential volatility and impact on imports and exports.
- Potential restrictions for international trade.
- More tension to that already experienced by the local and regional situation.
- Impact on logistics distribution chains, which would generate increases in international trade.
- Review of our energy matrix.
Source: Larepublica
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
