The price of the dollar closed the week down and stood at S/ 3.7050, the lowest level so far in Pedro Castillo’s administration, the same value he recorded almost a year ago, on March 17, 2021. In this way, the US currency fell 0.22% in relation to the closing of the day before when it stood at S / 3.7130, according to the report of the Central Reserve Bank (Central Reserve Bank).
On the day, the monetary authority placed Repo of currencies (Regular) to the overnight term for S/ 200 million at the average rate of 4.37%. It also placed a 9-month Interest Rate Swap for S/ 50 million at an average rate of 4.83%.
According to Adrián Armas, central manager of economic studies at the BCRP, the reasons behind the fall in the exchange rate are due to the strength of our economy, with the greater supply and strong collection of IR from the mining sector, the supply of dollars from corporate companies for tax payments; and the low demand for dollars by companies in a scenario of “stability” as a counterpart to the electoral uncertainty that was experienced during these months in 2021.
Indeed, Gianina Villavicencio, Manager of Foreign Exchange Brokerage at Renta 4 SAB Peru, stated that during the day the flow of supply and demand came from the AFPs and corporations. US$ 290 million were traded in the market at an average price of S/3.6910.
In addition, this Thursday, March 10, the BCRP raised its reference interest rate from 3.5% to 4.0%. The decision was made considering that inflation stood at 6.15% in February, above the target range (1%-3%), due to the rise in international fuel and food prices, accentuated recently by the conflict between Russia and Ukraine.
Source: Larepublica
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