Peru: Morning News Roundup – Friday January 18

Chile recalls ambassador to Peru over sea border dispute

Chile confirmed Thursday that it has recalled its ambassador to Peru as a result of the maritime boundary demand presented by Peru at the international court at The Hague. Chilean Foreign Minister Alejandro Foxley said that, in this kind of situations "it is normal to summon home the ambassador, it is a usual step in diplomacy. And he is going to be here as long as necessary." Foxley said he will hold "a long conversation with the ambassador Cristian Barros to analyze the situation" and "to get ready for the future scenario. We are going to take some days to review all the agenda and to agree on a very fine strategy in respect to this issue. I do not want to dramatize this," said Foxley. (Xinhua – click here to read complete article)

Ecuador Might Mediate Peru-Chile Conflict

The possibility that the Ecuadorian government is summoned by Le Hague International Court of Justice in a lawsuit between Peru and Chile was admitted Thursday by Peruvian Foreign Minister Jose Garcia Belaunde. Belaunde said that Ecuador might be notified by the International Court of Justice because Ecuador is a signatory of the Declaration of Santiago, one of the instruments giving a judicial frame to the lawsuit, which refers to bilateral maritime limits. He said that Ecuador might have some participation in the process, because Chile will use documents that has signed with Ecuador in its plea, and assured that Lima and Quito keep a very good relation. (Prensa Latina – click here to read complete article)

Peru Free Trade pact no better than NAFTA

Despite the failures of the North American Free Trade Agreement, Sens. Susan Collins and Olympia Snowe voted to expand it to Peru. The Peru Free Trade Agreement is another bad trade deal put forward by corporate interests in D.C. that makes it easier to profit at the cost of millions of people both here and abroad. Although we see the costs of these agreements in job losses and a huge deficit, the other loss comes to local and state democracy. The Peru FTA contains the same investor-state provisions as NAFTA. By signing on, the United States binds each individual state to these policies. These laws then over-ride local laws. They take decision-making power out of state legislative bodies and give it to multi-national corporations. (Kennebec Journal – click here to read complete article by Violet Raymond)

Peru Moves to Stem Currency Appreciation

Peru’s central bank said Wednesday evening it was taking a series of measures to help reduce what it calls speculative flows into the country and in turn stem the strong recent appreciation of the currency. The measures take effect starting in February. The minimum reserve requirement for existing and new deposits was raised to 7% from 6%. Banks’ minimum required central bank deposit percentage was raised to 2% from 1%. The marginal reserve requirement for Sol-denominated deposits was established at 15%, while the marginal reserve for dollar-denominated deposits was raised to 40% from 30%. Central bank president Julio Velarde reportedly denied Peru would implement outright capital controls. “The higher reserve requirement should increase the banking system’s demand for dollars and make it easier for the central bank to absorb new dollar inflows,” observes Credit Suisse. In the past week, foreign investors have been taking long PEN positions in the NDF market, betting on a continued appreciation of the Peruvian currency, a Wall Street salesperson tells LatinFinance. (Latin Finance)

Afro-Peruvian Chandler

Heat up a cold winter night with Afro-Peruvian music and dance performed by members of Perú Negro at Chandler Music Hall in Randolph at 7 p.m. on Tuesday, Jan. 29. Perú Negro has thrilled audiences worldwide with their colorful costumes, traditional instruments and vibrant interpretations of Afro-Peruvian music and dance. Afro-Peruvian songs and dances had been almost forgotten when in the 1950s, a group of Peruvian artists and scholars began a successful effort to recover the traditions of the country’s slaves who had been brought from many regions in Africa, making cultural continuity virtually impossible. (Times Argus – click here to read complete article)