Currencies by Country:

What is the Peruvian sol (PEN)?

Credit Ratings & Outlook

In the latest credit ratings from December 1970, Moody's gives Peru a Baa3 rating, with a positive outlook. Fitch has a stable outlook with a BBB rating. Finally, S&P last issued a BBB rating, with a stable outlook.

Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

Central Bank Rate

The current central bank interest rate is 4.25%. This is the same as 2011, which was 4.25%.

GDP

In 2010 the total GDP was $157,053,003,533 in US Dollars, while the per capita GDP was $5,401. It grew by 8.78% over the previous year.

Unemployment

The latest unemployment rate for 2010 is 7.70%.

Consumer Price Index

The latest consumer price index for 2010 is 114.78.

Political Structure

The current head of the government is Prime Minister Oscar Valdés, and the head of state is President Ollanta Humala (in an executive role).

Currency Details

Peru’s currency, the sol, denoted by the ISO code PEN, derives its name from historical use and worship of the sun (sol is Spanish for “sun”), which symbolizes power to the Peruvians. In 1991, the nuevo sol was introduced in place of the inti, which was introduced in 1985. This older currency was replaced due to high inflation. Before the inti, the old sol was used, which was replaced for the same reason.

Travel Notes

Visitors should take into consideration that it is very difficult to change currencies other than the US dollar.

Moody’s Rating
Baa3, 16 Dec 2009
S&P Rating
BBB+

Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

What does it look like?

Political Structure

The Peruvian government is structured as a constitutional republic. The former Spanish territory has been independent since July 28, 1821, and its most recent constitution was drafted on December 31, 1993. The government is divided into three branches: the executive, the legislative, and the judicial. The President is the head of the executive branch with two vice presidents serving below him. The unicameral legislative branch is called the Congress of the Republic of Peru and consists of 120 members elected to five-year terms by popular vote. The judicial branch is called the Supreme Court of Justice and the National Council of the Judiciary appoints its members.

Prominent Figures

Chief of State President Alan GARCIA Perez (since 28 July 2006); First Vice President Luis GIAMPIETRI Rojas (since 28 July 2006); Second Vice President Lourdes MENDOZA del Solar (since 28 July 2006); note – the president is both the chief of state and head of government Head of Government President Alan GARCIA Perez (since 28 July 2006); First Vice President Luis GIAMPIETRI Rojas (since 28 July 2006); Second Vice President Lourdes MENDOZA del Solar (since 28 July 2006) note: Prime Minister Javier VELASQUEZ Quesquen (since 12 July 2009) does not exercise executive power; this power is in the hands of the president Cabinet Council of Ministers appointed by the president Elections president elected by popular vote for a five-year term (eligible for nonconsecutive reelection); presidential and congressional elections held 9 April 2006 with runoff election held 4 June 2006; next to be held in April 2011 Election Results Alan GARCIA Perez elected president in runoff election; percent of vote – Alan GARCIA Perez 52.5%, Ollanta HUMALA Tasso 47.5%

Key Economic Factors

Consumer Price Index:

The CPI, often used to gauge inflation, measures the variations in the prices of a basket of goods within the country of Peru. The CPI looks at different socio-economic situations of households living in the studied area. The Consumer Price Index is very important for the economic well being of the country because it measures relative inflation. The strength of the Peruvian sol has kept inflation low.

Gross Domestic Product:

GDP growth is a commonly used to gauge how well the economy is doing, and/or productivity growth. It measures the internal demand within Peru and gives the government an idea of inflation and unemployment rates. Export growth has helped contribute to Peru’s overall GDP increase. Both government consumption and private consumption have fueled spending and in the process, expanded the economy. However, as domestic demand increases, the trade deficit within Peru also increases.

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