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 |
| Ba3 |
| S&P Rating |
| BB |
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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. |
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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
President Alan Garcia Perez is the President of Peru (since 28 July 2006). The nation's two vice presidents are Giampietri Rojasand David Waisman and Lourdes Mendoza del Solar. The Prime Minister of Peru is Roberto Danino, however he has no executive power. The central bank of Peru is the Central Reserve Bank of Peru (BCRP), and is led by Chairman of the Board of the BCRP is Oscar Dancourt Masias.
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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