Skip to content

The dollar hit its lowest value in 2022, what are the reasons behind this fall?

Lima, March 8, 2022Updated on 03/08/2022 07:19 am

The dollar price was quoted yesterday in S/3,725 per unit, according to the Central Reserve Bank of Peru. This is a 0.90% drop in the exchange rate compared to Friday’s close, which amounted to S/3,759.

According to specialists consulted, international markets continue to be volatile due to the uncertainty generated by the war between Russia and Ukraine. This leads investors to take refuge in assets such as dollarwhich increases its value.

However, the price of the ‘commodities‘ continues to grow, which appreciates the currency of emerging countries. “Emerging markets, such as Peru, are benefited by the prices of the ‘commodities‘ and that makes them attractive”, affirmed Luis Falen, head of macroeconomics at Inteligo.

Likewise, Falen stressed that the price of copper touched”peak levels last week” and, although due to the volatility of the market it cannot be guaranteed that its value will continue to increase, this makes the national currency more competitive.

This strength is what makes Peru attract investors and can amortize the growth of the dollar. “The supply flow came from the ‘off shore’ market, that is, from investors who enter to invest in shares. Foreign investors see us as attractive because the economy is stable despite the political issues, there is not so much uncertainty in the market”, said Gianina Villavicencio, manager of Foreign Exchange Brokerage at Renta 4.

On the other hand, Villavicencio indicated that the exchange rate it could continue to fall throughout March due to the fact that in this month the payment of taxes begins. “As the payment of taxes begins next week, the supply of dollaris and the exchange rate could drop a few points, perhaps reaching below S / 3.70″, he indicated.

Source: Elcomercio

Share this article:
globalhappenings news.jpg
most popular