The dollar is trading at just around S/ 3.36 in Peru – and the Peruvian sol is showing astonishing strength. While many countries are complaining about weak currencies and rising import prices, something else is happening in Peru: billions of dollars are flowing into the country through exports. Copper, gold, and other export commodities, in particular, are ensuring that there is an abundance of US dollars on the Peruvian market.
As recently as June 2026, the dollar was at times significantly above S/ 3.40. In August, the exchange rate even fell below S/ 3.34 at times. By mid-September, it was moving primarily in the range between approximately S/ 3.35 and S/ 3.38. The sol has thus maintained a significant portion of its strength against the most important international trading currency.
Peru is swimming in export dollars
One of the most important reasons lies in foreign trade. Peru is currently selling significantly more goods abroad than it is importing. In simple terms, this means that large amounts of dollars are entering the country through exports. The scale is remarkable. According to the Ministry of Economy and Finance, Peru reached a trade surplus of approximately 19.5 billion US dollars between January and May 2026. At that point, it had already reached approximately 44 billion US dollars over a twelve-month period.
And this development has continued. The president of the Peruvian Central Bank (BCRP), Julio Velarde, stated that the trade surplus could head toward 50 billion US dollars in 2026. This is an enormous amount of money for an economy like Peru's and is one of the reasons why there is a large supply of US dollars in the Peruvian foreign exchange market. The rapid growth of Peru's trade with India also illustrates how strongly foreign trade is developing.
Copper and gold fill the coffers
Behind these billions are, above all, Peru's exports. The country is one of the world's major commodity producers and benefits from high prices for key metals. Copper plays a central role in this, alongside gold, zinc, and other raw materials. High world market prices mean that Peruvian companies receive more dollars for the same amount of exported commodities.
The effect eventually hits the foreign exchange market: exporters receive dollars, but need soles for wages, taxes, and many other costs in Peru. A portion of the dollars earned is therefore exchanged for soles. The larger this supply of dollars, the greater the pressure on the dollar price can become. In July 2026 alone, Peru recorded a trade surplus of approximately 3.3 billion US dollars. Gold and copper exports were among the key pillars of this development.
Velarde explains the pressure on the sol
BCRP President Julio Velarde has pointed exactly to this correlation. According to him, several domestic factors are creating upward pressure on the sol. These include the high trade surplus, strong foreign currency inflows, and a positive current account balance.
However, Velarde warns against deriving a simple forecast from this. The exchange rate is not determined solely in Peru. Decisions by the US Federal Reserve, international capital flows, commodity prices, and the global strength or weakness of the dollar can move the rate at any time. Currently, however, the sol has an advantage: it is meeting a Peruvian economy into which many dollars are flowing structurally.
Nearly 100 billion dollars as a safety buffer
Added to this is another heavyweight factor: Peru's international reserves. At the beginning of July 2026, net international reserves stood at approximately 99.7 billion US dollars. This corresponded to approximately 28 percent of Peru's gross domestic product.
These reserves are not simply money that can be spent. Nevertheless, they are important for the stability of the currency, as they give the central bank significant leeway if the foreign exchange markets become unbalanced. The BCRP generally allows the market to determine the exchange rate, but it can intervene if fluctuations become too severe. It is precisely this combination that has earned the sol as the Peruvian national currency a reputation over the years as a comparatively stable Latin American currency.
A strong sol makes imports cheaper
For consumers, a strong sol can have advantages. Many goods, raw materials, and intermediate products are traded internationally in US dollars. If a Peruvian importer has to pay fewer soles for a dollar, their costs in the local currency drop. This applies, for example, to machinery, electronics, medicine, vehicles, and numerous industrial intermediate goods. For Peruvians traveling to the USA or paying for other services in dollars, a low dollar is generally favorable as well.
The difference becomes clear with larger sums. For 10,000 US dollars, at an exchange rate of S/ 3.80, approximately S/ 38,000 would be required. At S/ 3.36, it is only S/ 33,600. That corresponds to a difference of S/ 4,400.
But not everyone is happy about the strong sol
What is pleasant for importers can become a problem for exporters. For example, if a company sells goods for 100,000 dollars abroad, at an exchange rate of S/ 3.80, this income would be worth S/ 380,000 in mathematical terms. At S/ 3.36, however, only S/ 336,000 remains.
The revenue in dollars is identical, but the equivalent value in soles is S/ 44,000 lower. This hits companies particularly hard if their costs are mainly incurred in soles. After all, wages, local services, and other expenses do not automatically become cheaper just because the dollar falls.
Dollars from abroad are also worth less
The situation is similar for families who regularly receive money from the USA or other countries. Someone receiving 1,000 dollars would have received S/ 3,800 at an exchange rate of S/ 3.80. At S/ 3.36, it is only S/ 3,360.
For the same dollar amount, S/ 440 is thus missing. The strong sol therefore has two sides: those who need to buy dollars benefit from a lower exchange rate. Those who receive dollars and then exchange them for soles, on the other hand, receive less local currency. For travelers, PeruMagazin also explains how cash, cards, soles, and dollars interact when paying in Peru.
Why doesn't the dollar just keep falling?
Because the foreign exchange market is not a one-way street. Peru can export as many commodities as it likes – if international conditions change, the dollar could still rise again. Decisions by the US Federal Reserve are particularly important here. Higher US interest rates can make the dollar more attractive globally and encourage international investors to move capital toward the USA.
Political uncertainty in Peru, falling commodity prices, or external crises could also increase the demand for dollars. This is precisely why BCRP President Velarde refuses to predict a clear direction. The currently strong sol is the result of several factors and not a guarantee that the exchange rate will remain at this level permanently.
The sol currently has strong arguments
The exchange rate of around S/ 3.36 is therefore no coincidence. Peru is achieving an exceptionally high trade surplus, commodity exports are bringing billions of dollars into the country, and the central bank has very high international reserves. At the same time, the sol remains dependent on developments outside of Peru. What the Federal Reserve decides, how copper and gold perform, and where international investors move their money can change the exchange rate at any time.
Currently, however, there is an unusual situation: Peru is not lacking dollars. Peru is receiving so many dollars from its foreign trade that this very supply is supporting the sol. And suddenly, it is not the sol that has to hide from the dollar – instead, the dollar is trading at just around S/ 3.36 in Peru.
Banco Central de Reserva del Perú (BCRP), Exchange rate and foreign trade data, September 2026
Banco Central de Reserva del Perú, Inflation Report, September 2026
Ministerio de Economía y Finanzas del Perú, Foreign trade data 2026
RPP, Statements by BCRP President Julio Velarde on exchange rate and trade surplus
El Comercio, Exchange rate and balance of trade, September 2026
Image: Sen67howard, Wikimedia Commons, CC BY-SA 3.0 – used unchanged
