Peru: Net International Reserves total US$59.195 bn on Sep 25

Peru: Net International Reserves total US$59.195 bn on Sep 25

According to BCR’s Weekly Economic Report, reserves were mainly made up of liquid international assets.

This level of reserves is equivalent to 27% of the country’s gross domestic product (GDP).

International reserves guarantee the foreign currency availability in unusual situations that might occur due to external shocks resulting in eventual and possible withdrawals of foreign currency deposits and a subsequent capital flight from the financial system.

Also, adequate availability of foreign exchange reserves helps reduce the country-risk with the subsequent improvement of the country credit ratings and better conditions to expand foreign investment in the country.

International reserves are particularly important in the context of globalization of international markets, reduction of barriers to capital flows, volatility of financial, foreign exchange, and metal markets.

As is known net international reserves amounted to US$59.121 on September 18.