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4/8/09

Peru Central Bank cuts big

Peru's Central Bank tonight cut a full 1% off its baseline lending rate, taking it from 6% to 5%. Here's a Bloomie report on the cut, but what it basically means is "we don't care about inflation but we're in the crapper on the growth front." But hey, I could have told 'em that. In fact, I have....since December.

It also means that Peruvians should go and buy themselves a few US dollars instead of holding Nuevos Soles, as the S/3.135 = U$1 won't last very long. See you 3.3, bitches! Here's a three month chart that tracks the major locally traded currencies against the US Dollar. Peru's Nuevo Sol (PEN) is the blue line and will soon be joining the Argentine Peso at the "down 5% vs greenback" level.