October 30, 2021. Lima, Peru.- Net International Reserves (NIR) as of October 27, 2021, according to the Central Reserve Bank (BCR), totaled US$ 75,358 million.
With respect to the month of September, the balance of the NIR was reduced in US$ 666 million and, likewise, it is higher in US$ 651 million than the figure at the end of 2020 (US$ 74,707 million).
As for the Exchange Position at the same date, this component amounted to US$ 55,069 million.
This balance is lower in US$ 868 million than at the end of September and lower in US$ 3,189 million than that registered at the end of December 2020 (US$ 58,258 million).
What are NIRs?
The NIR is the account that includes the availability of foreign currency in the national territory. These are resources in gold and currencies other than the nuevo sol, which the BCR has.
These reserves are necessary because they serve as support against the possibility of external shocks. Given this, the economic and financial stability of Peru depends to a large extent on the availability of foreign exchange, as these shocks could cause significant withdrawals in foreign currency deposits and, thus, a “capital flight”.
RINs are made up of liquid international assets and their current level is equivalent to 34% of GDP.
What is the exchange position?
The exchange position is the account made up of the assets of the BCR that do not have as a counterpart obligation with third parties (short- and long-term foreign currency obligations, with residents and non-residents).
It is the part of the NIRs that they can use to intervene when there is volatility in the exchange rate.