2023 Investment Climate Statements: Peru

Policies Towards Foreign Direct Investment

Peru seeks to attract investment, both foreign and domestic, in nearly all sectors. The BCRP estimated $5.1 billion in Foreign Direct Investment (FDI) in 2022 (up from $2.0 billion in 2021). The GOP prioritizes public-private partnership projects in transportation infrastructure, electricity generation and distribution, education, telecommunications, ports, health, and sanitation, among other sectors.

Peru’s 1993 constitution grants national treatment for foreign investors and permits foreign investment in almost all economic sectors. Under the constitution, foreign investors have the same rights as national investors to benefit from investment incentives, including tax exemptions. In addition to the constitutional provisions, Peru has several laws governing FDI including the Foreign Investment Promotion Law (Legislative Decree (DL) 662 of September 1991) and the Framework Law for Private Investment Growth (DL 757 of November 1991). Other relevant laws include the Private Investment in State-Owned Enterprises Promotion Law (DL 674) and the Private Investment in Public Services Infrastructure Promotion Law (DL 758). Article 6 of Supreme Decree No. 162-92-EF (the implementing regulations of DLs 662 and 757) authorized private investment in all industries except within natural protected areas and weapons manufacturing.

Peru and the United States benefit from the United States-Peru Free Trade Agreement (PTPA), which entered into force on February 1, 2009. The PTPA established a more secure, predictable legal framework for U.S. investors in Peru and protects all forms of investment. U.S. investors enjoy the right to establish, acquire, and operate investments in Peru on an equal footing with local investors in almost all circumstances. The PTPA can be found here: https://ustr.gov/trade-agreements/free-trade-agreements/peru-tpa .

The GOP created the investment promotion agency ProInversion in 2002 to manage concessions and privatizations of state-owned enterprises. The agency currently focuses on private concessions in the energy, education, transportation, health, sanitation, and telecommunication sectors, and organizes international roadshow events to attract investors. The agency also manages the Works for Taxes (Obras por Impuestos) program, a private investment mechanism that allows companies to invest in public investment projects and deduct that amount from their income taxes ( https://www.investinperu.pe/en/oxi ). Foreign companies are required to register all investments with ProInversion. Investors can find specific project opportunities on the ProInversion website ( https://www.investinperu.pe/es/app/portafolio-de-proyectos-de-proinversion ) as well as details on the Works for Taxes program ( https://www.investinperu.pe/en/oxi ).

Peru’s 2022-2025 National Sustainable Infrastructure Plan for Competitiveness (PNISC) identified 72 priority infrastructure projects to help address an estimated $110 billion infrastructure gap. Of note, the plan seeks investment to support a $5 billion gas pipeline project and a $6 billion expansion of the Lima metro. Key national infrastructure projects already underway include construction of Lima metro lines, an expansion of the Jorge Chavez International Airport in Lima, and multiple energy projects. Investors report in recent years that Peru’s energy projects advance more quickly than transportation and agricultural projects, which can suffer delays.

Although Peru has generally supported private investment since the 1990s, government administrations occasionally promote measures that some observers regard as contrary to the nation’s traditionally open and free market orientation. In December 2011, for example, Peru signed into law a 10-year moratorium on the entry of live genetically modified organisms (GMOs) for cultivation. In December 2020, the government extended the moratorium for an additional 15 years.

Limits on Foreign Control and Right to Private Ownership and Establishment

Peru’s constitution (Article 6 under Supreme Decree No. 162-92-EF) authorizes foreign investors to carry out economic activity provided that investors comply with all constitutional precepts, laws, and treaties. Investment exclusions exist, including foreign investment activities in natural protected reserves and weapons manufacturing. Peruvian law requires majority Peruvian ownership in media; air, land, and maritime transportation infrastructure; and private security surveillance services. Foreign interests cannot acquire or possess under any title, mines, lands, forests, waters, or fuel or energy sources within 50 kilometers of Peru’s international borders. However, foreigners can obtain concessions in these areas and in certain cases the GOP may grant a waiver. The GOP does not screen, review, or approve foreign direct investment outside of those sectors that require a governmental waiver.

Other Investment Policy Reviews

The World Trade Organization (WTO) published its latest Trade Policy Review on Peru in February 2020 ( https://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm#bycountry ). The WTO commented that foreign investors received the same legal treatment as local investors in general, although Peru restricted foreign investment on property at the country’s borders and in air transport and broadcasting. The report highlighted the government’s ongoing efforts to promote public-private partnerships (PPPs) and strengthen the PPP legal framework in line with Organization for Economic Cooperation and Development (OECD) principles. The report noted that Peru maintained a regime open to domestic and foreign investment that fostered competition and equal treatment.

The OECD invited Peru to begin the accession process in January 2022 and adopted Peru’s accession roadmap in June 2022. The roadmap set forth a process for the OECD to evaluate Peru’s adherence and alignment to OECD instruments, standards, and best practices covering a wide range of policy areas, including open trade and investment, public governance, integrity and anti-corruption, and environmental protection. There is no deadline for accession completion, although the process typically takes countries four-to-five years or more. The outcome and timeline will depend on Peru’s political will and capacity to adjust regulations and policies to align with OECD standards and best practices.

Peru has not had a third-party investment policy review through the OECD or United Nations Conference on Trade and Development (UNCTAD) in the past five years. Embassy Lima is also not aware of any major civil society-led investment policy review within the last five years.

Business Facilitation

The GOP does not have a specific regulatory agency that seeks to streamline business operations, but the Institute for the Protection of Intellectual Property, Consumer Protection, and Competition (INDECOPI) reviews the enactment of new regulations by government entities and has the authority to block regulations it deems overly burdensome on business operations. INDECOPI also has a Commission for Elimination of Bureaucratic Barriers: https://www.indecopi.gob.pe/web/eliminacion-de-barreras-burocraticas/presentacion .
Peru allows foreign business ownership, provided that a company has at least two shareholders and that its legal representative is a Peruvian resident. Businesses must reserve a company name through the national registry, SUNARP, and prepare a deed of incorporation through a Citizen and Business Services Portal (https://www.serviciosalciudadano.gob.pe/ ). After a deed is signed, businesses must file with a public notary, pay notary fees of up to one percent of the company’s capital, and submit the deed to the Public Registry. The company’s legal representative must obtain a certificate of registration and tax identification number from the national tax authority SUNAT ( www.sunat.gob.pe ). Finally, the company must obtain a license from the municipality of the jurisdiction in which it is located. Depending on the core business, companies may need to obtain further government approvals such as sanitary, environmental, or educational authorizations.

Outward Investment

Peru’s Trade Commission Offices (OCEXs), under the supervision of Peru’s export promotion agency PromPeru, operate in numerous countries (including the United States) to promote Peruvian exports. The GOP does not restrict domestic investors from investing abroad.

Transparency of the Regulatory System

Laws and regulations most relevant to foreign investors are enacted and implemented at the national level. Ministries and agencies usually (but not always) make draft regulations available for public comment. El Peruano, the government’s official gazette, publishes regulations at the national, regional, and municipal level. Ministries generally maintain current regulations on their websites. Rule-making and regulatory authority also exists through executive agencies specific to individual sectors. For instance, the Supervisory Agency for Forest Resources and Wildlife (OSINFOR), the Supervisory Agency for Energy and Mining (OSINERGMIN), the Supervisory Agency for Telecommunications (OSIPTEL), and the Supervisory Agency for Transportation (OSITRAN) – which all report directly to the President of the Council of Ministers – can enact new regulations that affect investments in the economic sectors they manage. These agencies also have the right to enforce regulations with fines. Regulation is generally reviewed on the basis of scientific and data-driven assessments. The government does not promote or require companies’ environmental, social, and governance (ESG) disclosure.

Accounting, legal, and regulatory standards are consistent with international norms. Peru’s Accounting Standards Council endorses the use of International Financial Reporting Standards (IFRS) by private entities. Public finances and debt obligations, including explicit and contingent liabilities, are transparent and publicly available at the Ministry of Economy and Finance website: https://www.mef.gob.pe/es/estadisticas-sp-18642/deuda-del-sector-publico .

International Regulatory Considerations

Peru is a member of two regional economic blocs. Under the Pacific Alliance, Peru seeks to harmonize regulations and reduce barriers to trade with Alliance’s members: Chile, Colombia, and Mexico. Peru is also a member (with Bolivia, Colombia, and Ecuador) of the Andean Community (CAN), which issues supranational regulations (based on consensus of its members) that supersede domestic provisions.

Peru follows international food-standard bodies, including CODEX Alimentarius, World Organization for Animal Health (OIE), and International Plant Protection Convention (IPPC) guidelines for Sanitary and Phytosanitary (SPS) standards. When CODEX does not have limits or standards established for a product, Peru defaults to the U.S. maximum residue level or standard. Peru’s system is generally more aligned with the U.S. regulatory system and standards than with its other trading partners. Peru notifies the WTO Technical Barriers to Trade (TBT) Committee of all agricultural-related technical regulations.

Legal System and Judicial Independence

Peru uses a civil law system. Companies are generally regulated through Peru’s civil code, which includes sections governing contracts and general corporate law. Peru’s civil court system resolves conflicts between companies. Companies can also access conflict-resolution services in civil courts and through extra-judicial mediation mechanisms. Litigation processes in Peruvian courts are slow.

Peru has an independent judiciary. The executive branch does not interfere with the judiciary as a matter of policy. Regulations and enforcement actions are appealable through administrative processes and the court system. The National Justice Board (Junta Nacional de Justicia), which began operating in January 2020, supervises the selection processes, appointments, evaluations, and disciplinary actions for judges, prosecutors, and leaders of the National Electoral Processes Office and Peru’s national identification registry (ONPE and RENIEC, respectively).

Laws and Regulations on Foreign Direct Investment

Peru has a stable and attractive legal framework used to promote private investment. The 1993 Peruvian constitution includes provisions that establish principles to ensure a favorable legal framework for private investment, particularly for foreign investment. A key constitutional and regulatory principle is equal treatment of domestic and foreign investment. Some of the main private investment regulations include:

• Legislative Decree 662, which establishes foreign investment legal stability regulations;
• Legislative Decree 757, which establishes Peru’s private investment growth framework; and
• Supreme Decree 162-92-EF, which establishes private investment guarantee mechanism regulations.

Peru’s legal system is available to investors. Laws relevant to foreign investment along with pertinent explanations and forms can be found on the ProInversion website: https://www.investinperu.pe/en/invest/legal-framework-for-investments .

Competition and Antitrust Laws

INDECOPI is the GOP agency responsible for reviewing domestic competition-related concerns. Congress passed a mergers and acquisitions (M&A) oversight law in January 2021. The law requires INDECOPI to review and approve M&A activity involving companies, including multinationals, that have combined annual sales or gross earnings over $153 million in Peru or if the value of the annual sales or gross earnings in Peru of two or more of the companies involved in the proposed M&A operation exceed $23 million each.

A legislative decree issued in September 2018 (DL 1444) modified the public procurement law to allow government agencies to use government-to-government (G2G) agreements to facilitate procurement processes.  The GOP considers the G2G procurement model a suitable method for expediting priority infrastructure projects in a manner that is more transparent and less susceptible to corruption. However, the USG, outside of the US Army Corps of Engineers, does not have a mechanism to enter into G2G contracts in Peru. Since the introduction of G2G contracting, Peru has used the mechanism for several multibillion-dollar projects, including a $1.6 billion project with the United Kingdom government in 2020 to reconstruct infrastructure caused by 2017 flooding in northern Peru and a $3 billion project with the French government in 2021 to construct Peru’s central highway.

Expropriation and Compensation

The Peruvian constitution states that Peru can only expropriate private property based on public interest, such as public works projects or for national security. Article 70 of the constitution establishes that the State can only expropriate through a judicial process or prior legal mandate, and only after payment of compensation, including for damages. Peruvian law bases compensation for expropriation on fair market value. Article 70 also guarantees the inviolability of private property.

Public discourse has at times touched upon expropriation or nationalization of the extractives sectors, including during the presidential campaign and tenure of former President Pedro Castillo (July 2021 to December 2022), but the GOP has not to date moved forward with any direct expropriation of sectors or businesses. Landowners have alleged indirect expropriation due to government inaction and corruption in purported land expropriation cases that have, at times, been linked to projects endorsed by subnational governments.

Dispute Settlement

ICSID Convention, New York Convention

Peru is a party to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) and to the International Center for the Settlement of Investment Disputes (ICSID convention). Disputes between foreign investors and the GOP regarding pre-existing contracts must still enter national courts unless otherwise permitted, such as through provisions found in the PTPA. In addition, investors who enter into a legal or tax stability agreement may submit disputes with the government to national or international arbitration if stipulated in the agreement. Several private organizations and entities – including the American Chamber of Commerce in Lima, the Lima Chamber of Commerce, and the Pontifical Catholic University of Peru (PUCP) – operate private arbitration centers. The quality of such centers varies, and investors should choose arbitration venues carefully.

Investor-State Dispute Settlement

The PTPA includes a chapter on dispute settlement, which applies to implementation of the agreement’s core obligations, including labor and environment provisions. Dispute panel procedures set high standards of openness and transparency through the following measures: open public hearings, public release of legal submissions by parties, admission of special labor or environment expertise for disputes in these areas, and opportunities for interested third parties to submit views. The agreement emphasizes compliance through consultation and trade-enhancing remedies and encourages arbitration and other alternative dispute resolution measures.

The PTPA provides investor-state claim mechanisms. It does not require that an investor exhaust local judicial or administrative remedies before a claim is filed. The investor may submit a claim under various arbitral mechanisms, including the ICSID Convention and ICSID Rules of Procedure, the ICSID Additional Facility Rules, the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules, or, if the disputants agree, any other arbitration institution or rules. Peru has paid previous arbitration awards. There is no recent history of extrajudicial action against foreign investors.

International Commercial Arbitration and Foreign Courts

The 1993 constitution allows disputes among foreign investors and the government or state-controlled enterprises to be submitted to international arbitration.

Bankruptcy Regulations

Peru has a creditor rights hierarchy similar to that established under U.S. bankruptcy law, and monetary judgments are usually made in the currency stipulated in the contract. However, administrative bankruptcy procedures are slow and subject to judicial intervention. Compounding this difficulty are occasional laws passed to protect specific debtors from action by creditors that would force them into bankruptcy or liquidation. In August 2016, the GOP extended the period for bankruptcy from one year to two years. Peru does not criminalize bankruptcy.

Investment Incentives

Peru offers foreign and national investors legal and tax stability agreements to stimulate private investment. These agreements guarantee that the statutes on income taxes, remittances, export promotion regimes (such as drawbacks, or refunds of duties), administrative procedures, and labor hiring regimes in effect at the time of the investment contract will remain unchanged for that investment for 10 years. To qualify, an investment must exceed $10 million in the mining and hydrocarbons sectors or $5 million within two years in other sectors. An agreement to acquire more than 50 percent of a state-owned company’s shares in a privatization process may also qualify an investor for a legal or tax stability agreement, provided that the added investment will expand the installed capacity of the company or enhance its technological development. The government does not currently offer any incentives for clean energy investments.

Foreign Trade Zones/Free Ports/Trade Facilitation

Peru is a member of the Association of Free Zones of the Americas (AZFA) and the World Free Zone Organization (WFZO). Peru currently has four Free Trade Zones (FTZs): Zofratacna (in Tacna), Matarani (Arequipa), Ilo port (Moquegua), and Paita (Piura). MINCETUR’s Foreign Trade Facilitation Office oversees Peru’s free trade zones. Companies can become FTZ users through public auctions. This FTZ status grants access to tax benefits and customs advantages promoting entry, permanence, and exit facilitation procedures for goods.

Performance and Data Localization Requirements

Peru’s Personal Data Protection Law (Law Number 29733) has been in effect since 2013. Data controllers who process personal data must be registered with the National Authority for Personal Data Protection (ANPDP). Personal data is defined as any information on an individual which identifies or makes him/her identifiable through reasonable means, including: biometric information; racial and ethnic origin; political, religious, philosophical or moral opinions or convictions; personal habits; union membership; and information related to health or sexual preference. Unless otherwise exempted by statute, data controllers are generally required to obtain the consent of data subjects for the processing of personal data. Consent must be prior, informed, expressed, and unequivocal. A data controller may transfer personal data to places outside of Peru only if the recipients have adequate protection measures in place.

Data controllers must adopt technical, organizational, and legal measures to guarantee the security of personal data and avoid its alteration, loss, unauthorized processing, or access. Peruvian laws do not require notifications to any data subject or any other entity upon a breach. Peru does not have special regulations related to the processing of the personal data of minors. The ANPDP is responsible for enforcement and can issue administrative sanctions or fines based upon whether the violation is mild, serious, or very serious. The law provides for some recourse for the data subject when violations occur. There are no requirements for foreign IT providers to turn over source code and/or provide access to encryption.

In 2020, Peru established the Digital Trust Framework (Urgency Decree 007-2020) which provides for personal data protection and transparency, consumer protection, and digital security. The law established the Government and Digital Transformation Secretariat (SEGDI) under the Prime Minister’s Office as the overall coordinator and governing body for digital security, but it placed data protection and transparency under the Ministry of Justice and Human Rights (MINJUS). The order created a national data center as a digital platform to manage, direct, articulate, and supervise the operation, education, promotion, collaboration, and cooperation of data nationwide.

Real Property

Peru enforces property rights and interests.  Mortgages and liens exist, and the country’s property registry, managed by the National Superintendency of Public Records (SUNARP), is reliable. Foreigners and/or non-resident investors cannot own land within 50 km of a border.

Intellectual Property Rights

Peru is listed on the Watch List in the United States Trade Representative’s (USTR’s) 2023 Special 301 Report, a congressionally mandated annual review of the global state of intellectual property (IP) rights protection and enforcement. According to the report, Peru has yet to fully address several of the most important and longstanding recommendations from previous Watch List appearances, including fulfilling its IP obligations under the PTPA, namely Articles 16.11.8 and 16.11.29(b)(ix) regarding statutory damages and Internet Service Provider (ISP) safe harbor protections, respectively.

Nevertheless, the Government of Peru has increased its enforcement activity over the past five years and generally offers strong regulatory IP rights protections. Peru’s legal framework provides for easy registration of trademarks, and inventors have been able to patent their inventions since 1994. Peruvian law does not provide pipeline protection for patents or protection from parallel imports. Peru’s copyright law is generally consistent with the WTO Agreement on Trade-Related Aspects of Intellectual Property (TRIPS), and it provides the same protections for U.S. companies as Peruvian companies in all IP rights categories under the PTPA.

Peru is a member of the World Intellectual Property Organization (WIPO) and is a signatory to many WIPO-administered treaties including the 1996 WIPO Copyright Treaty (in force since March 2002), the WIPO Performances and Phonographs Treaty (April 2002), and the WIPO Patent Cooperation Treaty (June 2009). In July 2022, Peru’s congress ratified the WIPO Strasbourg, Vienna, and Locarno Agreements. Peru is also a member of the Global Patent Prosecution Highway. Peru is not currently a party to the Madrid Protocol on Trademarks, the Hague System for Industrial Designs, or the WIPO Patent Law Treaty. In July 2022, Peru deposited its instrument of accession to the WIPO Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications (GI), and it entered into force in Peru on October 18, 2022. In addition, Peru enacted Law 31497 that simplifies trademark registration, renewal and protection in June 2022.

Peru’s intellectual property and competition authority INDECOPI is traditionally a reliable partner for the U.S. government, the private sector, and civil society, and it has made good faith efforts to decrease the trademark and patent registration backlog and filing time. Although INDECOPI is the GOP agency charged with promoting and defending intellectual property rights, IP rights enforcement also involves other GOP agencies and offices, including: the Public Prosecutor’s Office (Fiscalía), the Peruvian National Police (PNP), the Tax and Customs Authority (SUNAT), the Ministry of Production (PRODUCE), the Judiciary, and the Ministry of Health’s (MINSA’s) Directorate General for Medicines (DIGEMID).

For additional information on Peru’s intellectual property regime, including national laws and points of contact, please see WIPO’s country profile for Peru at: https://www.wipo.int/directory/en/details.jsp?country_code=PE .

Capital Markets and Portfolio Investment

Peru allows foreign portfolio investment and does not place restrictions on international transactions. The private sector has access to a variety of credit instruments. Peruvian mutual funds managed $7.6 billion in January 2023. Private pension funds managed a total of $28 billion in January 2023.

The Lima Stock Exchange (BVL) is a member of the Integrated Latin American Market, which includes stock markets from Pacific Alliance countries. As of July 2018, mutual funds registered in Pacific Alliance countries may trade in the Lima Stock Exchange.

The Securities Market Superintendent (SMV) regulates the securities and commodities markets. SMV’s mandate includes controlling securities market participants, maintaining a transparent and orderly market, setting accounting standards, and publishing financial information about listed companies. SMV requires stock issuers to report events that may affect the stock, the company, or any public offerings. Trading on insider information is a crime, with several reported prosecutions in past years. SMV must vet all firms listed on the Lima Stock Exchange or the Public Registry of Securities. SMV also maintains the Public Registry of Securities and Stockbrokers.

London Stock Exchange Group FTSE Russell downgraded Peru from Secondary Emerging Market to Frontier status in March 2020. In a statement, the BVL stated that the decision was not necessarily replicable among the other index providers adding that Morgan Stanley Capital International (MSCI), which is considered a main benchmark for emerging markets, was not expected to reconsider the BVL’s status. As of March 2023, MSCI maintained Peru’s emerging market status.

Citing, in part, political instability and governance issues undermining investor confidence and growth prospects, the three major credit agencies downgraded Peru’s sovereign credit ratings during former President Castillo’s abbreviated term (from July 2021 to December 2022): Moody’s downgraded in September 2021, Fitch in October 2021, and S&P Ratings in March 2022; all currently with a negative outlook. Despite the downgrades, the three agencies maintain investment grade ratings for Peru.

Money and Banking System

Peru’s banking sector is highly consolidated. Seventeen commercial banks account for 82 percent of the financial system’s total assets, valued at $159 billion in December of 2022. In 2022, three banks accounted for 71 percent of loans and 70 percent of deposits among commercial banks. Peru has a relatively low level of access to financial services (50 percent nationwide), with access significantly lower outside of Lima and other major urban areas.

The Central Reserve Bank of Peru (BCRP) is an independent institution with the autonomy to manage monetary policy to maintain financial stability. The BCRP’s primary goal is to maintain price stability via inflation targeting between one to three percent. Year-end inflation rose to 8.5 percent in 2022, up from 4.0 percent in 2021. Inflation continued in 2023, with Peru’s 12-month rate through March reaching 8.6 percent. BCRP’s well-respected President, Julio Velarde began his fourth consecutive five-year term in October 2021.

Analysts consider the banking system to be generally sound, thanks in part to lessons learned during the 1997-1998 Asian financial crisis. Non-performing bank loans accounted for 4.0 percent of gross loans as of December 2022, nearly identical to the 3.9 percent registered in 2021.

Under the PTPA, U.S. financial service firms have full rights to establish subsidiaries or branches for banks and insurance companies. While foreign banks are allowed to freely establish banks in the country, they are subject to the supervision of Peru’s Superintendent of Banks and Securities (SBS). Peruvian law and regulations do not authorize or encourage private firms to adopt articles of incorporation or association to limit or restrict foreign participation. However, larger private firms often use “cross-shareholding” and “stable shareholder” arrangements to restrict investment by outsiders (not necessarily foreigners) in their firms. As families or close associates often control ownership of Peruvian corporations, hostile takeovers are rare.

Foreign Exchange and Remittances

Foreign Exchange

Under Article 64 of the constitution, the GOP guarantees the freedom to hold and dispose of foreign currency. There have been no reported difficulties in obtaining foreign exchange. Exporters and importers are not required to channel foreign exchange transactions through the BCRP and can conduct transactions freely on the open market. Anyone may open and maintain foreign currency accounts in Peruvian commercial banks. Under the PTPA, portfolio managers in the United States may provide portfolio management services to both mutual funds and pension funds in Peru, including funds that manage Peru’s privatized social security accounts.

The constitution guarantees free convertibility of currency. However, limited capital controls still exist as private pension fund managers (AFPs) are constrained by how much of their portfolio can be invested in foreign securities according to a cap (currently 50 percent) set by the BCRP. Over the years, the BCRP has gradually increased this operating maximum, reaching the 50 percent limit authorized by Peruvian law in September 2018.

The foreign exchange market mostly operates freely. Funds associated with any form of investment can be freely converted into any world currency. To limit “extreme variations” in the exchange rate, the BCRP intervenes through purchases and sales in the open market without imposing controls on exchange rates or transactions. Since 2014, the BCRP has pursued de-dollarization to reduce dollar denominated loans in the market and purchased U.S. dollars to mitigate the risk that spillover from expansionary U.S. monetary policy might result in over-valuation of the Peruvian Sol (PEN) relative to the U.S. dollar. As of December 2022, 24 percent of loans and 36 percent of deposits were dollar-denominated.

The U.S. Dollar averaged PEN 3.83 per $1 in 2022, up from PEN 3.88 in 2021.

Remittance Policies

Article 7 of the Legislative Decree 662 issued in 1991 provided that foreign investors may send, in freely convertible currencies, remittances of the entirety of their capital derived from investments, including the sale of shares, stocks or rights, capital reduction or partial or total liquidation of companies, the entirety of their dividends or proven net profit derived from their investments, and any considerations for the use or enjoyment of assets that are physically located in Peru, as registered with the competent national entity, after having paid all the applicable taxes.

Sovereign Wealth Funds

Peru’s Ministry of Economy and Finance (MEF) manages the Fiscal Stabilization Fund which serves as a buffer for the GOP’s fiscal accounts in the event of adverse economic conditions. It consists of treasury surplus, concessional fees, and privatization proceeds, and is capped at four percent of GDP. The fund was nearly exhausted to finance increased spending in response to the COVID-19 pandemic, dropping from $5.5 billion at the end of 2019 to $1 million at the end of 2020, but has since partially recovered to $1.5 billion by the end of 2022. The Fund is not a party to the IMF International Working Group or a signatory to the Santiago Principles.

Privatization Program

The GOP initiated an extensive privatization program in 1991 and encouraged foreign investors to participate. Since 2000, the GOP has promoted multi-year concessions as a means of attracting investment in major projects, including a 30-year concession to a private group (Lima Airport Partners) to operate the Lima airport in 2000 and a 30-year concession to Dubai Ports World to improve and operate a new container terminal in the Port of Callao in 2006.

Additional Resources

Department of State

• Country Reports on Human Rights Practices;
• Trafficking in Persons Report;
• Guidance on Implementing the “UN Guiding Principles” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities;
• U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises; and;
• Xinjiang Supply Chain Business Advisory 

Department of the Treasury

• OFAC Recent Actions

Department of Labor

• Findings on the Worst Forms of Child Labor Report;
• List of Goods Produced by Child Labor or Forced Labor;
• Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World and;
• Comply Chain.

Climate Issues

Peru’s updated Nationally Determined Contribution (NDC) goals include reaching national net zero greenhouse gas emissions by 2050 as set forth in the government’s National Climate Change Strategy (last updated 2015). In September 2022, the government initiated a public consultation process for Peru’s new “National Strategy on Climate Change to 2050.” In January 2023, Prime Minister Alberto Otarola announced in congress that the approval of the revised strategy was a GOP priority although it remains in public consultation as of April 1, 2023. Peru generally lacks a developed regulatory regime related to the reduction of greenhouse gas emissions.

Resources to Report Corruption

Secretary of Public Integrity of the Prime Minister Office and General Coordinator
Sarah Farfan Cuba
Jr. Carabaya Cdra. 1 S/N – Lima,
(51) (1) 219-7000, ext. 1137
emunive@pcm.gob.pe 

General Comptroller’s Office
Comptroller Nelson Shack Yalta
Jr. Camilo Carrillo 114, Jesus Maria, Lima
(51) (1) 330-3000
contraloria@contraloria.gob.pe 

Proética, the Peruvian chapter of Transparency International
Samuel Rotta
Executive Director
Calle Manco Capac 816, Miraflores, Lima
(51) (1) 446-8581, 446-8941, 446-8943
srotta@proetica.org.pe