How to take advantage from a weak dollar

The reduction experienced by the dollar in the last few days has been of a significant magnitude in Peru. It is expected to help lower the pressure on the prices of the family basket. On the other hand, it is necessary that businesses know how to take advantage of this circumstance.

One of the most important actions they can take, both companies and individuals in general, is to monitor the price of the dollar, in order to decide what decisions to make.

The US currency has been showing a downward trend in our country since last week, after the changes in the ministerial cabinet and the departure of Guido Bellido as head of the Presidency of the Council of Ministers (PCM).

Stock price in the last days

  • During the morning of Thursday, October 21, the Peruvian dollar registered a price of S/. 3.946 at interbank level.
  • This Tuesday, October 19, the exchange rate in Peru closed lower again, this time at S/ 3.948, according to the Central Reserve Bank (BCR).
  • On Monday, October 18, during the morning, the dollar traded at S/ 3.932 at interbank level.
  • On Friday morning, October 15, the exchange rate was quoted at S/3.901 per dollar in the interbank market.

Although it is difficult to predict what the behavior of the exchange rate will be in the long term, we can take some actions if we observe that there is a downward trend.

Securex shares some tips to take advantage of this decrease in the dollar rate:

1. Pay debts in dollars

If the dollar is falling, the first thing you should do is to evaluate your business finances, reviewing each of the debts you have in foreign currency, to see how much interest you are paying monthly and decide whether the prepayment option is convenient for you.

You must take into account the following: if you have been paying off a loan in dollars, the reduction in the exchange rate of the greenback is, in practice, as if your debt had been reduced.

So, if you can prepay your debt after negotiating with the entity that gave you the loan, then do it, because you will end up paying less.

2. Save in soles

If the dollar goes down it means that it loses its value in the local market against the sol.

So, if you decide to save, choose to do it in soles. This way you will have a higher return in your account, because your savings are in a currency that appreciates.

3. Buying in dollars

Another alternative for businesses to take advantage of the low dollar is to buy products whose cost is in that currency, such as merchandise or even a car (assuming your company needs it). Remember, consider this option only if you have sufficient resources.

As an entrepreneur, keep in mind that there are many imported goods that are sold in dollars, so it would be a good opportunity to buy some that have to do with the line of business of your company, such as computers or white goods.

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