Economic leaders propose interest rate and currency reforms in Peru and Argentina

In Peru, Julio Velarde, president of the Central Reserve Bank (BCR), has advocated for the removal of interest rate caps. Speaking before the Senate's Special Procedures Commission, Velarde argued that such limits do not guarantee the availability of financing and may instead cause banking institutions to suspend loans to certain users. He noted that high interest rates on credit cards are linked to competition and transparency, warning that imposing caps could lead financial entities to deny credit to higher-risk borrowers.

In Argentina, former Economy Minister Domingo Cavallo has proposed three key steps to support President Javier Milei’s economic direction: lifting currency controls, accumulating reserves in the Central Bank, and declaring the US dollar legal tender. While supporting the current administration's focus on controlling inflation, Cavallo emphasized that economic reactivation requires broader investment beyond large-scale projects. He suggested extending benefits currently reserved for large investments to the wider economy and allowing contracts, deposits, and loans to be conducted in US dollars.