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US Dollar's Decline in Value Prompts Central Reserve Bank of Peru to Make Record-Breaking Purchase

(LIP-ir) -- After breaking a record once again, Peru's Central Reserve Bank (BCR) managed to stabilize the value of the US dollar by purchasing $437.7 million on Monday.

Valued at 2.944 soles for every dollar, experts considered that the US currency was stable in Peru by Monday afternoon.

In an effort to keep the dollar from continuing its decline in value in Peru, the Central Reserve Bank purchased $437.7 million, the largest quantity of dollars Peru's BCR has purchased in one day in its history.

Peru's BCR has broken this record three times this year.

On January 10 the Central Reserve Bank of Peru purchased a record-breaking $363 million while on January 11 it purchased $347 million. These are the three largest purchases of dollars in the bank's history, all of which took place in January 2008.

It was reported that local banks were exchanging one dollar for 2.9 soles, while street vendors and other establishments where exchanging one dollar for 2.93 soles.

According to experts, the US currency's value has decreased because of an increased amount of dollars in Peru, which have mainly come from foreign investment.

This has caused the dollar to decrease in value, said Augusto Saldarriaga, market analyst for Interbank.

The Central Reserve Bank of Peru has purchased over $1.8 billion this year. In 2007, Peru's BCR purchased over $10.3 billion to keep the US currency from dramatically losing it value.

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# Anonymous Dave says :
15 January, 2008 [ 11:50 ]

1. Enter free-trade negotions with China and the EU
2. Pin the sol to the euro
3. Let the US tumble into 3rd world poverty while Peru keeps on rising

Peru has certainly bet on the wrong horse. (Or rather the CIA forced them to)

# Dale says :
16 January, 2008 [ 10:56 ]

Dave you are right on and I may add that Peruvian banks offering accounts denominated in Euros would not be a bad touch either...........The purchasing of Dollars I dont care how many can only be symbolic. At best and is a horse that is already dead and the corpse is stiff. When you think of Dollars think of blow flys around the mouth of a dead amimal if you need a mental picture..........

# Jack Be Nimble says :
16 January, 2008 [ 12:27 ]

With France on its duff, and West Germany going in the tank because of them trying to prop up the give something for nothing folks in East Germany, the Euro will tank. Why do you suppose the UK has stuck to their pound if the long term prospectus of the Euro is really that great? Not to mention the Swiss and their currency the Franc, which are still invested heavily in the U.S. market. I will stick with the dollar. You fools cash in with the Euro and let us see who laughs their way to the bank after it is all said and done.

# Romano says :
16 January, 2008 [ 13:40 ]

Hey Guys! For quick returns you can try the Bolivar Fuerte...

Jokes apart, countries like Peru have to hold their reserves in a basket of currencies. The same applies to us, at household level, since we generally don't put all our eggs in the same basket, do we?

Cheers,


Romano