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Pension plans in dollars in Peru "should disappear," BCR says

LivinginPeru.com
Isabel Guerra

Peru's President of the Central Reserve Bank (BCR) Julio Velarde, said yesterday that pensions in US dollars should disappear and be substituted by pension plans in soles, because of the high volatility of the dollar these days.

“If the dollar keeps on dropping, many people could turn into impoverished pensioners in 25 years for having their pensions in dollars. The worry in the world is not Peruvian inflation, but U.S. inflation," he said.

He noted that at present almost all pension plans in Peru are set in dollars, and that people should turn to soles instead.

“There's not any other country in the world, except the US, that has pension plans in dollars,” remarked Velarde.

Peru's private system, modeled after the one implemented by Chile in 1981, began in 1993.

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# Charlie says :
24 September, 2009 [ 20:59 ]

I don't think it is accurate to state that Peru is the only country that has pension plans that are paid in dollars.  Uraguay, Puerto Rico, and Panama come to mind ...


Charlie

# David N says :
24 September, 2009 [ 21:00 ]

So put your faith in the Peruvian nuevo sol?? Well, the history of Peru is very unstable, and historically so has been the Peruvian currency. The nuevo sol could go down the tubes with the next election (or coup). All major purchases in Peru are in US dollars, something not likely to change anytime soon.

Surprising that Julio is so uneducated...Ecuador uses the US dollar as it's official and only currency.

# Crabtree says :
25 September, 2009 [ 16:54 ]

Stability of the sol aside, this kind of declaration is the result of irresponsible US elected officials who have all but officially bankrupted the country and face no choice but to print more deficit dollars which long term will drop the US dollar more.   I don't like any fiat currency but the dollar vs. the sol, I'll take the sol over the next 10 years.   Amazing how a corrupt government (US) can ruin the hard labor and productivity of so many good citizens in such a short time.

# mericorps says :
25 September, 2009 [ 22:21 ]

um Crabtree,  If you are concerned about corrupt governments, is there a reason you do not include Peru in that catagory?

Your post makes no sense whatsoever.

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