# Greater exchange rate flexibility warranted in Peru – IMF - Central Banking

> 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.

- Date: 2019-12-04 · published 2019-12-04T12:00:00.000Z
- Category: macro · region Peru · magnitude low
- Page: https://feedsoft.ai/events/55826-greater-exchange-rate-flexibility-warranted-in-peru-imf-central-banking
- Commodities: [Peruvian Sol (PEN per USD)](https://feedsoft.ai/c/USDPEN.md)

## Why it matters

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.

## Read by commodity

- USDPEN: neutral

## Sources

- centralbanking.com: https://www.centralbanking.com/central-banks/monetary-policy/operating-framework/4587216/greater-exchange-rate-flexibility-warranted-in-peru-imf

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.