Although Peru’s national currency is one of the least depreciated in Latin America, things have been changing in recent days. This is because the Sol has devalued almost 2% compared to the dollar in less than a week. And in the midst of it, the enthusiasm of Peruvians for bitcoin (BTC) grows.
So that its currency does not suffer the sharp devaluations faced by other economies in the region, the Central Reserve Bank of Peru uses a strategy known as “dirty float”. It is an exchange regime that is applied with the idea of keeping the value of the dollar at bay, as explained in a video published by the BBC media.
It means then that based on its «dirty float» strategy, the Central Bank does not care about fixing the price of the dollarbut it fluctuates according to the market, although it does so in a limited way.
It happens because there is an intervention on the part of the Central Bank that buys dollars when the exchange rate falls and tends to sell when the exchange rate rises, with which it manages to keep its price relatively stable.
However, what Economists highlight is that Peru does not have fixed rules in the face of this intervention to keep its currency stable.
In that sense, in the Latin American country, it is not clear when, or how much, the Central Bank is going to intervene. This, in times of global economic uncertainty, plays against the country that, due to various factors, has had a lower flow of dollars entering its economy.
Although it is difficult to predict what may happen to the price of the dollar and the global and local factors that affect it, the upward trend of the US currency in Peru is clear, according to what notes Bloomberg.
Interest grows in Peru for bitcoin
And while the Peruvian sol is devalued, the country is also heading to become one with the highest adoption of bitcoin region of.
As CriptoNoticias recently reported, in Peru, more than 60% of the population is interested in acquiring BTC. Currently, more than 1.2 million residents of the country have cryptocurrencies in their possession.
The figure indicates that at least 3.74% of the Peruvian population has crypto assets. However, the trend is for the figures to change radically this year, taking into account the high interest that residents have around digital assets.
CoinDance sample that volumes of bitcoin traded on LocalBitcoins with Peruvian sol are not insignificant. Furthermore, Peru is one of the leading countries in the region in terms of cryptocurrency transaction volume, behind only Colombia and Venezuela.
The crypto-winter is also making its mark in Peru with fewer bitcoin transaction records in recent months, but the data indicates that More and more Peruvians could be turning to cryptocurrency to save and protect their funds in the long term.
The interest in bitcoin in Peru is not new, since last year, the use of cryptocurrencies in the country grew 600% in one year.