Today, December 31, the dollar closed 2021 with a slight rise, but below the barrier of S / 4.00.
The Central Reserve Bank (BCR) reported that the exchange rate ended this year with a price of S / 3,991 at the interbank level.
Only on this day, the green ticket registered a minimum increase of 0.05% in the Peruvian market.
With this closing, the BCR indicates that in 2021 the dollar it rose a total of 10.28% in Peru, compared to what was registered in the previous year.
As you remember, in 2020 the dollar it closed at S / 3.62 in the interbank market, while before the pandemic it was trading at S / 3.30.
How did the dollar fare this year?
The green ticket it remained volatile during this 2021 due to factors of the global and local economy.
The biggest rise in the us currency occurred during the second half of the year, before the political uncertainty.
The political noise Due to the presidential elections, social conflicts and the global inflationary phenomenon were some of the reasons that drove the price of the dollar.
That is why it was touched all-time highs during several sessions, the highest level being the quote of S / 4,138 registered on October 6.
It should be noted that the exchange rate with which this 2021 closes is slightly higher than the S / 3.93 projected by Ministry of Economy and Finance (MEF).
Price of the dollar for buying and selling
The platform quéestaeldolar.pe indicates that in the parallel market the dollar the dollar is bought at S / 3.96 and sold at approximately S / 4.00.
While in digital exchange houses the green ticket It is bought at S / 3.97 and sold at S / 4.02 on average.
.
2021 Year in Review: The Rise of the US Dollar in Peru
As the curtain closes on 2021, Peru’s economy has witnessed a notable rise in the US dollar against the Peruvian sol. According to the Central Reserve Bank (BCR), the exchange rate ended the year at S/ 3,991, with the dollar rising by 10.28% compared to the previous year.
This slight increase is despite the dollar remaining below the S/ 4.00 barrier. The dollar’s performance can be attributed to various factors, including global and local economic conditions. The green ticket, as it’s commonly known, experienced significant volatility throughout the year.
Key Factors Contributing to the Dollar’s Rise
The biggest rise in the US currency occurred during the second half of the year, prior to the presidential elections. The political uncertainty created during this period led to increased speculation, causing the dollar to appreciate in value.
Another factor contributing to the dollar’s rise was the global economic recovery. As countries began to recover from the COVID-19 pandemic, investors became more risk-averse, seeking safer assets like the US dollar. This increased demand for the dollar further contributed to its appreciation.
Comparing Current Exchange Rates
To put these numbers into perspective, let’s look at current exchange rates. According to Revolut, 1 USD is equivalent to 3.71 PEN [[1]]. Similarly, Wise reports an exchange rate of 1 USD to 3.76975 PEN [[3]]. These rates are comparable to the BCR’s reported exchange rate of 3,991 at the interbank level.
Historical Context
For those interested in understanding the long-term trends, Focus Economics provides a historical context of the exchange rates. According to their data, the exchange rate ended 2022 at PEN 3.81 per USD, compared to the end-2021 value of PEN 3.99 per USD and the figure a decade earlier of PEN 2.80 per USD in Peru [[2]].
Conclusion
the US dollar’s rise in Peru during 2021 can be attributed to a combination of global and local economic factors, including the presidential elections and the global economic recovery. While the dollar’s performance was notable, it’s essential to keep an eye on the current exchange rates and historical trends to make informed decisions.
References
[1] https://www.revolut.com/en-US/currency-converter/convert-usd-to-pen-exchange-rate/
[2] https://www.focus-economics.com/country-indicator/peru/exchange-rate/
[3] https://wise.com/gb/currency-converter/usd-to-pen-rate
