Dollarization ratio of credit in Peru fell from 70% to 38.5% in the last 10 years amid economic agents’ preference for domestic currency, informed the Central Reserve Bank of Peru (BCR).
“In January 2015, credit to the private sector showed a dollarization ratio of 38.5 percent, while liquidity showed a dollarization ratio of 33.5 percent,” stated the issuing entity.
On the other hand, BCR said the average selling price of the US dollar in the interbank market closed February at S/. 3.093 per dollar.
The dollar has been showing an appreciatory trend against most other currencies in recent months, as reflected in the evolution of the FED index since January 2013.
This appreciation of the dollar is associated with expectations that the Federal Reserve (Fed) will start normalizing its interest rates.
So far this year, most of the Latin American currencies –including the Peruvian nuevo sol– and the major currencies have depreciated against the US dollar.
So far this year, these currencies have depreciated 4.7 percent on average against the US dollar.
(END) JJN/JJN /RMB
Published: 2/28/2015