Editing Economy of Peru (section)

==Currency==

The [[Peruvian sol|sol]] is the currency of Peru. The exchange rate as of January 2025 is 3.76 soles to the [[United States dollar|US dollar]].<ref>{{Cite web |url=https://www.sbs.gob.pe/app/pp/sistip_portal/paginas/publicacion/tipocambiopromedio.aspx |website=www.sbs.gob.pe |title=COTIZACIÓN DE OFERTA Y DEMANDA TIPO DE CAMBIO PROMEDIO PONDERADO |access-date=2025-03-05}}</ref> It was instated in 1991, when the Peruvian government abandoned the [[Peruvian inti|inti]] due to [[hyperinflation]] of the currency; the sol has since maintained the lowest inflation rate in Latin America.<ref>San José State University Department of Economics, [http://www.sjsu.edu/faculty/watkins/peru.htm#GARCIA The economic history and the economy of Peru] {{Webarchive|url=https://web.archive.org/web/20001005151205/http://www.sjsu.edu/faculty/watkins/peru.htm#GARCIA |date=5 October 2000}}. Retrieved 11 July 2007.</ref> The sol replaced the inti at a rate of 1 nuevo sol = 1,000,000 intis.<ref>{{in lang|es}}</ref> The inti itself replaced another inflated currency, the [[Peruvian sol (1863–1985)|sol]], which was used between 1863 and 1985. The name ''sol'' comes from the Latin ''[[solidus (coin)|solidus]]'', and is also the Spanish word for "[[sun]]", which the ancient [[Inca]] civilization worshiped as the god [[Inti]].

The sol currently enjoys a low inflation rate of 2.5%.<ref name="IMF" /> Since it was put into use, the sol's exchange rate with the United States dollar has stayed mostly between 2.80 and 3.30 to 1. Out of all the currencies of the Latin American region, the sol is the most stable and reliable, being the least affected by the downturn in the value of the US dollar; during late 2007 and early 2008, the exchange rate fell to 2.69 to 1, which had not been seen since 1997. The exchange rate is set on a daily basis by the ''Banco Central de Reserva del Perú'' (Central Reserve Bank of Peru).

The sol is divided into 100 [[céntimo]]s. The highest-denomination banknote is the 200 soles note; the lowest-denomination coin is the rarely used 5 céntimos coin.