LIMA, Aug 28 (NNN-AGENCIES) — Remittances sent by Peruvians working abroad amounted to US$1.094 billion in the second quarter of the year, the Central Reserve Bank of Peru (BCR) has reported.
“This amount represented a 19.2% increase compared to the same quarter last year,” the issuing entity stated.
The BCR explained that this result was mainly explained by remittances from the United States and a greater number of Peruvians who send this type of money transfer.
It should be pointed out that the United States is the main country of origin of remittances to Peru.
Meanwhile, Peru’s net international reserves amounted to US$73.026 billion as of Aug 23, the BCR reported, which is equivalent to 29% of the country’s gross domestic product (GDP).
International reserves guarantee the foreign currency availability in unusual situations that might occur due to external shocks resulting in eventual and possible withdrawals of foreign currency deposits and a subsequent capital flight from the financial system.
Also, adequate availability of foreign exchange reserves helps reduce the country-risk with the subsequent improvement of the country credit ratings and better conditions to expand foreign investment in the country.
International reserves are particularly important in a context of globalization of international markets, reduction of barriers to capital flows and volatility of financial, foreign exchange and metal markets. — NNN-ANDINA
