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Country
Background
The Republic of Peru is located in northwestern South America
on the Pacific coast between Ecuador and Chile, and is also
bordered by Colombia, Brazil and Bolivia. The country has
three main geographical areas, the coastal plain, the sierra
and the jungle. The sierra covers the high Andes region, which
slopes down into a large tropical plain. This jungle region
extends to the Brazilian Border and forms part of the Amazon
basin. Peru's capital and commercial center is Lima, and is
located on the coast. The country's population is 26 million,
and the commonly used language is Spanish, although Quechua,
an indigenous language, is also an official language.
The country has a presidential system of government, with
the President elected by universal suffrage every five years.
The President is the head of state and appoints the Council
of Ministers in the cabinet. Peru has a unicameral Congress,
whose members are also elected for five years.
Recognized for its rich geographical and natural resources,
including oil, copper, iron ore, silver, gold, coal, phosphate
and potash, Peru is one of the principal mining countries
in the world. The forests are known for their cedar, oak and
mahogany, while the waters of its Pacific coast are known
worldwide for their abundance of fish. Peru is the first producer
of fish meal in the world, thus fishing is a major source
of exports. The varieties of microclimates that can be found
in the country allow Peru to produce an ample diversity of
agricultural goods. Cotton, sugarcane, asparagus, potatoes,
and coffee are a few. Its textile and clothing industries
are also recognized for their high quality export products.
During the late 1980s a number of factors almost drove the
country to the brink of fiscal insolvency, but an austerity
program introduced in 1990 brought inflation under control
and the macroeconomic variables now show more stability.
The banking system in Peru is regulated by the Superintendencia
de Banca y Seguros (SBS), and the central bank is responsible
for the monetary policy. The main function of the SBS is to
look after the public deposits on behalf of the government,
to give the authorization for new financial institutions to
operate, and to intervene in any financial institution prior
to bankruptcy. The central bank, Banco Central de Reserva
del Peru, plays the role of regulator of monetary policy.
This combined with steady public expenditure, is a fundamental
part of the government's economic program.
The currency of Peru is the Peruvian New Sol (SWIFT Code PEN).
There are currently 26 banks operating in Peru, four of which
are foreign owned, namely Citibank, BankBoston, Banque Nationale
de Paris, and Standard Chartered Bank. Banks lsuch as Sudameris,
BBVA and Santander Central Hispano have major participation
in local banks.
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Copyright ©2008