Resilience and determinants of the nominal exchange rate in Peru: A descriptive analysis (2020–2026)

Renzo Maximo Paquiyauri Hinostroza

MPRA Paper from University Library of Munich, Germany

Abstract: This essay analyzes the evolution and determinants of the nominal exchange rate in Peru during the 2020–2026 period. Throughadescriptivemacroeconomicandinstitutionalanalysis, it examineshowthePeruvianSolfacedsevereshocks, such as the COVID-19 pandemic, periods of high domestic political uncertainty, and the Federal Reserve’s rate hike cycle. The role of the Central Reserve Bank of Peru’s (BCRP) foreign exchange interventions through the use of financial derivatives and the spot market is highlighted. Preliminary results show that, despite the initial extreme volatility, solid macroeconomic fundamentals and the managed floating strategy consolidated the Sol as one of the most stable and resilient currencies in the region in the post-pandemic environment

Keywords: Nominal exchange rate; exchange rate policy; BCRP; foreign exchange interventions; macroeconomic; resilience. (search for similar items in EconPapers)
JEL-codes: E52 (search for similar items in EconPapers)
Date: 2026-05-28, Revised 2026-05-28
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:129301

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