The Peruvian sol continues to surprise international markets. With an exchange rate of S/ 3.35 per dollar in February 2026, Peru's currency has consolidated as the most stable and strongest currency in Latin America, accumulating an appreciation of over 10% since 2025.
What's happening with the Peruvian sol?
While other Latin American currencies like the Argentine peso, Brazilian real, and Colombian peso have suffered double-digit depreciations against the dollar, the Peruvian sol has done the exact opposite: it has strengthened.
According to the Central Reserve Bank of Peru (BCRP), the current exchange rate is around S/ 3.35, a level not seen since before the COVID-19 pandemic. This means the dollar buys fewer soles than it did a year ago.
5 factors behind the sol's strength
1. Record trade surplus
Peru projects a trade surplus of approximately $30 billion for 2026, driven by exports of copper, gold, and agro-industrial products. More dollars entering the country means higher demand for soles.
2. Rising copper and gold prices
Copper and gold, Peru's main export products, maintain elevated prices in international markets. Gold has surpassed $2,800 per ounce, directly benefiting the trade balance.
3. Solid monetary policy from BCRP
Julio Velarde, president of the BCRP, has maintained a prudent monetary policy. The reference rate remains stable, and the central bank has intervened by purchasing over $2.3 billion to prevent excessive appreciation.
4. Low fiscal deficit
Peru's fiscal deficit closed 2025 at just 2.2% of GDP, the lowest in 6 years. Public debt remains around 33% of GDP, well below the legal limit of 38%.
5. Global dollar weakness
Uncertainty around U.S. economic policy and geopolitical tensions have reduced the dollar's global appeal, benefiting emerging currencies like the sol.
How does this affect you as a saver and investor?
If you save in dollars: Your dollars are worth fewer soles than before. A $1,000 savings that was equivalent to S/ 3,700 in 2024 is now worth only S/ 3,350.
If you earn in soles: Your purchasing power has improved. Imported products and international travel are cheaper.
If you invest: BBVA Research projects that the interest rate differential will favor sol-denominated investments during 2026, as the Fed may cut rates while the BCRP keeps them stable.
What can you do with your money?
Diversify your savings. Don't put everything in dollars or everything in soles. A 60/40 mix (soles/dollars) can protect you against trend changes.
Take advantage of sol rates. Fixed-term deposits in soles offer competitive yields in Peru, especially in municipal savings banks.
Consider investments in the BVL. The Lima Stock Exchange has shares of mining companies that benefit from the commodity boom.
This article is for informational and educational purposes only. It does not constitute personalized financial advice. Investment decisions are the sole responsibility of the reader.
