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The IMF said in a statement published December 3 that the Central Bank of Peru could allow greater exchange rate flexibility as loan dollarisation declines. Loan dollarisation stands at 39% for firms and 10% for households.
The fund argues that limiting interventions would help absorb external shocks and foster financial development.
A more floating Peruvian sol could move USD/PEN more with external shocks, which affects the cost of Peruvian feed and fishmeal imports and the competitiveness of Peruvian fishmeal exports. The effect on feed commodity prices is modest.
centralbanking.comCentral Banking NewsdeskDec 4, 2019Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
