Investment to slow the rise in the exchange rate
Thursday, March 20, 2014
IMPRESA00 : 03
- Request reduces capital goods because it expensive to rising dollar , says the Central Bank. He says that Peruvians and banks are cautious dollar debts .
OMAR MANRIQUE P.[email protected]
The rising dollar is affecting , in part , private investment , the Central Reserve Bank ( BCR) said.
" The rise in the exchange rate also makes some demand for capital goods , which become more expensive for depreciation ( the nuevo sol against the dollar) to slow ," said Central Bank President Julio Velarde .
So far this year , the U.S. currency rises 0.46% of S / . 2.80 to S/.2.813 , after climbing nearly 10 % in 2013.
This trend has led to the demand for dollar loans is reduced considerably because people and companies fear that these obligations are more expensive to envisage a scenario in which the dollar would continue to rise.
"In general, Peruvians are cautious with dollar debts and banks as well," said the head of the BCR .
In that line , highlighted the rapid decline in foreign currency loans in recent months , a process of " de-dollarization will continue ."
Today , less than 40 % of the appropriations of the financial system is in dollars. In the last 12 months to January, the appropriations in this currency only grew by 2% , while the soles granted rebounded by 23% .
Counting both currencies , total credit increased at an annual rate of 13.7 % in January.
The upward trend of the dollar is also causing a rapid increase in deposits in that currency.
" So banks are dropping interest rates on deposits in foreign currency because they spare the dollars," Velarde said during his presentation at the Peruvian Investors Forum, organized by Latin Markets.
Downplayed the quick deposit dollarization , because , he said , a process that is being carried out mainly institutional investors ( AFP ) .
" An institution is moving very quickly from side to side , are not people, money is the hot ( ' hot money ' investors move in the short term ) ," he said . In addition , the central bank noted that in the past two weeks revived appetite for foreign currency sovereign bond investors.
Housing is cheaper in residential districts
A slight downward correction is observed in the prices of residential districts , said Central Bank President Julio Velarde .
In addition , he referred to the advancement of property prices to other socioeconomic strata.
"It's hard to see a bubble (real estate) . If the increase in housing prices is by fundamentals , we see increased risk , "he said in the Peruvian Investors Forum.
Moreover , he indicated that there is a potential supply of housing projects in the vast uncultivated lands surrounding the metropolis, and so far they are not exploited by the lack of a development plan .