This Wednesday, November 3, the price of the dollar rose again above 4 soles, the highest figure after three weeks of political and economic tranquility. This increase represents 0.43% compared to the previous day. However, this volatility in the price of the greenback keeps not only millions of Peruvians in suspense, but also investors and entrepreneurs.
At the close of yesterday, Tuesday, November 2, the BCR had to place exchange swaps for a total of 1,099.9 million soles and minutes before the same entity intervened with the sale of US $ 270 million at an exchange rate of S / 4.0077.
To date, so far this year, the Central Reserve Bank indicated that it has sold 10,292 million dollars in the spot market, and has placed net exchange swaps for sale and CDR BCRP for 5,637 million dollars, with which the exchange intervention totals 15,929 million dollars.
WHY ISN’T THE DOLLAR DOWN?
The mining conflicts that have become notorious in recent days are the main factor in the rapid increase in the value of the US currency as in the case of Antamina, which paralyzed its activities, which affects copper production in the country and that makes investors worry about what may happen, specialists indicate.
In addition, other mining companies such as Apumayo, Breapampa or Buenaventura also paralyzed their activities in recent days due to social conflicts.
These events add to the political uncertainty generated by the proximity to the vote of confidence of the Cabinet of Mirtha Vásquez, which is not yet completely concrete until tomorrow Thursday when the Congress of the Republic confirms its support.
Prior to this event, the prime minister had to face a new ministerial crisis with the scandal of the Halloween party of Minister Luis Barranzuela, who had to resign and with this could create a better environment for investment. However, the recovery would be for the short term, since if the government does not propose better investment scenarios, uncertainty and growth will be less.
Among the most obvious doubts for investment in Peru is in Pedro Castillo and his project for a Constituent Assembly and a new constitution.
As long as there is no clarity in the president’s message, the investments will not be concrete and the price of the dollar will remain above 4 soles for the remainder of the year, so economists advise the president to have a better political environment so that the type of change yields a little and before the end of the year it could be below 4 soles.
JULIO VELARDE CONCERNED
The president of the Central Reserve Bank (BCR), Julio Velarde, considered that mining conflicts are affecting the country’s perception of investments.
“Obviously you have to put order. I believe that a process of decompensation is accentuating that is affecting the country’s perception regarding future investments. Violence is not justified in any case ”, he stated.
The largest copper mine in Peru, Antaminacontrolled by Glencore and BHP, suspended its operations on Sunday after several days of blocking a road used by the company; and the largest group in the mining industry denounced a growing “spiral of protests.”
“Obviously, you have to put order“, said Velarde, in comments that seem to support the position of the mining sector.
Peru, the world’s second largest copper producer, has witnessed a series of protests against the sector since the president Pedro Castillo He took office in late July, scaring companies that called for more government action this week.
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