Peru bank says export surge to pressure sol currency

An influx of hard currency as Peru's exports surge on rallying mineral prices will likely pressure the local sol currency to strengthen against the dollar, Peru's central bank chief said on Wednesday. Peru is the world's second largest copper producer and an important exporter of other minerals whose climbing prices have helped the trade balance swing back into a surplus after a $2.9 billion deficit in 2015.
Central Bank President Julio Velarde said the central bank now expects a trade surplus of $5.1 billion this year, which would be the widest in five years. "In other words, there's an $8 billion turnaround in the balance of trade and that means there is pressure on the sol to strengthen," Velarde told lawmakers in a presentation. "For next year, we expect the trade surplus to increase by $1.3 billion."