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AFP Decision Delayed, BBVA Suggest AFP Withdrawal Noise Can Be Faded

PERU
  • BBVA have noted that Peru’s Economic Commission has delayed the discussion on AFP withdrawals to March 27. BBVA had previously noted the potential for noise around AFP withdrawals, reiterating that much depends on the total size of the withdrawal (based on the individual limits and individuals allowed to withdraw). Ultimately, in their view, it is only likely to be small and only produce noise that can be faded.
  • Looking at USDPEN, the central bank’s intervention across late February prompted a strong move lower for the pair, which has been consolidating in recent weeks. USDPEN is broadly respecting a short-term 3.66/3.70 range, with the local data docket remaining vacant until April 01, where Lima CPI is scheduled to be released.

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