Peru's net international reserves, which help the country preserve economic and financial stability, totaled US$ 62.353 billion on November 15, the Central Reserve Bank of Peru (BCR) reported.
According to BCR’s Weekly Economic Report, reserves were mainly made up of liquidity international assets.
This level of reserves is equivalent to 32% of the country’s gross domestic product (GDP).
Likewise, it is equivalent to 20 months of imports, and significantly higher than that of the other Pacific Alliance economies. Colombia’s international reserves accounted for 16% of its GDP, followed by Chile (16%) and Mexico (15%).
International reserves guarantee the foreign currency availability in unusual situations that might occur due to external shocks resulting in eventual and possible withdrawals of foreign currency deposits and a subsequent capital flight from the financial system.
Also, an adequate availability of foreign exchange reserves helps reduce the country-risk with the subsequent improvement of the country credit ratings and better conditions to expand foreign investment in the country.
International reserves are particularly important in a context of globalization of international markets, reduction of barriers to capital flows and volatility of financial, foreign exchange and metal markets.
(END) RGP/RGP/MVB
Published: 11/30/2015