The dollar is at S/ 3.80, its highest level in seven months, what does this mean?

The rise in the greenback has sparked fears among importers, but experts say it could benefit exports.

He dollar According to the Reserve Bank of India, it is in the range of S/3.80, exchange rate. This price has not been seen since February this year.

This increase is mainly due to external factors such as reduced demand for copper China As a result of the million dollar debt maintained by its real estate firm, Evergrande.

“Evergrande belongs to China’s real estate sector, which is a big consumer of raw materials and China is a major importer of copper, thus affecting the decline in copper and the fact that it is less exported and less dollars in the market. Louis Moscoso, fundamental analyst at Washington Capital.

Expectations for price hikes are high United States Federal Reserve This strengthens the dollar and the Fed’s decision to “cut interest rates for the first time in a long time weakens the sun and that pushes up the exchange rate,” he explained.

Imports and exports have different impacts

A rise in the value of the dollar can affect the household basket as it makes imported goods such as corn, oil, flour more expensive among other raw materials brought into the country. Others affected would be small business owners importing goods for the Christmas campaign.

“Production is still coming in between September and November and December, and that’s going to increase the prices of goods that are going to be sold in the Christmas season. Because the tax is also adjusted to the dollar, for every dollar that the Reserve Bank gives, that will also increase the price of goods. For example, if the dollar goes up by 10%, imports will go up by 10%, ” explained Roberto Díaz, president of the Association of Medium Importers.

See also  IVSS Pensioners 2024 Today, Sunday, April 28, 2024: Counseling by ID, They Pension, Statement of Account, Fixed Amount, IVSS Online, Contributions and Personal Account | Venezuela

Large nationals who receive remittances from abroad and exporters will also benefit. The latter “get more footfall and continue to pay the same in terms of services, labour, etc,” he said.

The expert also recalled that the rise of the dollar would benefit savers in this currency; For this reason, he suggested converting part of his savings into US currency.

Read more

Local News