Export Association Proposes Measures to Stem Currency’s Appreciation

Peru’s Export Association, Adex, is calling on the government to implement measures to slow the appreciation of the country’s currency against the dollar.

Adex has been making suggestions to the government as Peru’s stronger currency, the sol, has affected the earnings of some exporters. Previously, the association has asked the government to let some exporters pay taxes in dollars, rather than soles.

Last year, the sol appreciated about 5 percent against the dollar, while in 2011 it strengthened around 4 percent. In January 2011, the exchange rate was 2.83 soles to the dollar, while in January 2012 it was 2.70, and this month the average rate is 2.55.    The drop in the value of the dollar also affects people who earn salaries or receive pensions in dollars. 

Now, Adex has sent other recommendations to President Ollanta Humala’s administration, aimed at slowing the appreciation of the sol. It is calling for the government to limit the inflow of capital that has put strengthening pressures on the sol.

“The government should implement a series of measures in a strategy to prevent exports from continuing to lose their competitiveness,” Adex president Juan Varilas said, according to state news agency Andina.

Prime Minister Juan Jimenez said Monday that the government’s foreign exchange policies are sound. In an interview with RPP TV, Jimenez said that Peru’s foreign exchange challenges are not new.

“The issue of the dollar isn’t new, it is an old issue for the country,” he said, adding: “What we do know is that our currency is fine.”

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