After the opening of markets the euro paid at the beginning of the session 4.06 soles on averageso that it represented a change of 0.6% with respect to the value of the previous day, which was 4.04 soles.
If we consider the data of the last seven days, the euro notes a decrease in 0.15%; although in year-on-year terms it still accumulates an increase in 1.66%.
Comparing this data with that of previous days, it breaks with the flat streak of market prices of the last two sessions. In the last week, the volatility is somewhat lower than the data obtained for the last year (7.53%), which shows that in this last phase it is trending less changes than usual.
After 2023 considered as one of the worst years for the economy, the Minister of Economy and Finance of Peru, Alex Contrerashas maintained that the conditions are met for 2024 to be the recovery year.
The government’s calculation is to reach a growth in the Gross Domestic Product (GDP) of at least 3%. “Leaving aside the atypical year 2023, Peru’s economy has a great capacity for growth. In general, what we envision is a recovery, without the temporary factors that have played against it recently,” Contreras declared to the press.
The climatic eventsespecially ‘El Niño’, could have an adverse impact on the development of Peru’s economy, but the minister has expressed confidence in the stability and investment projects that he hopes will be consolidated in the months to come.
Despite the political crisis that Peru is currently experiencing and against all odds, the economy of this country boasts of being a of the most stable of the Latin American region, because while other currencies have experienced fluctuations, the peruvian sun has been strengthened.
The coronavirus pandemic generated a series of negative economic effects worldwide – such as inflation – which, also combined with Russia’s invasion of Ukraine and local monetary policy decisions, have been weakening the dollar.
However, the Peruvian currency has shown resilience to these events and has strengthened against the greenback and the euro. If the positive factors that have supported the sun in recent months continue, the currency could continue with the same streak in the coming months and even years.
The resistance of the Peruvian sol in the face of other adversities that have managed to hit other currencies has made it become a “shelter currency”especially in countries where dollars have been scarce, as is the case of Bolivia.
Although economic analysts have reduced their growth expectations for the Peruvian sol for the next two years, it is nevertheless expected that macroeconomic balances will continue to support the sun.
The sol has been legal tender in Peru since 1991 and replaced intiwhich circulated between 1985 and 1991, was initially also called as “new Sun” to differentiate it from its predecessor, but in 2015 it is called only the sun.
The origin of the new sun is understood after the world crisis of 1929, which led to a deep economic and exchange crisis in the country, as well as the creation of the Central Reserve Bank of Peru. It was during the first year of Alberto Fujimori’s government that the new sun was promoted to balance the hyperinflation and reorganize the economy.
After it came into effect, one sol was equivalent to one million intis or one billion “old” sols; Today the currency is divided into 100 cents and its issuance is regulated by the Central Reserve Bank of Peru.
Currently circulating coins of 10, 20, 50 cents, 1, 2 and 5 soles and bills of 10, 20, 50, 100 and 200 soles. Previously, 1 cent coins were also minted, but these were withdrawn from circulation in May 2011, while in January 2019 the 5 cent coins went out of circulation.
