As of October 22 of this year, the international reserves grew by 2,072 million compared to the level registered on December 31, 2016.
Peruvian Net International Reserves (NIR) reached its highest figure this year: US$ 63,757 million dollars indicated by the Central Reserve Bank’s (BCR) report which highlighted this figure due to its importance in contributing economic and financial stability for the country.
It should be noted that the level of NIR is mainly constituted by liquid international assets, which are equivalent to 31% of the Gross Domestic Product (GDP) and 20 months of imports. Exports and international development of the country’s economy plays an essential part.
Here you can check out how Peru-China trades have been solidifying during this year.
These net international reserves are the balance of international assets and liabilities of a country. Their importance lies in the fact that they guarantee an available reserve of foreign currency to face possible temporary external shocks or a massive withdrawal of deposits in foreign currency as a consequence of an unexpected change in the financial system.
The primary objective of the BCR, through NIR, is to guarantee the liquidity of international currencies and then to maximize their performance. The NIRs are composed of holdings in gold and silver, foreign banknotes and coins, deposits and certificates of deposit of foreign currency for periods not exceeding 90 days, among others.
This growth is undeniably a result of the country’s growing economy. Here you can review how private investment has grown this last quarter of the year, which is one of the many other signs indicating an improvement in the economic area.
Photo by La Republica