Hostname: page-component-848d4c4894-nr4z6 Total loading time: 0 Render date: 2024-06-13T06:05:04.691Z Has data issue: false hasContentIssue false
  • English
  • Français

Peru's Black Market in Foreign Exchange*

Published online by Cambridge University Press:  02 January 2018

Robert Grosse
Get access Rights & Permissions [Opens in a new window]

Extract

The foreign exchange market in Peru experienced the same kinds of overwhelming volatility and severe shocks as the rest of the national economy during the 1980s. Beginning in 1980, Peru's economy was buffeted by a severe decline in copper prices followed, in 1982, by a huge increase in real debt servicing costs as a result of the drop in industrial-country inflation and remaining high dollar interest rates. This simultaneous squeeze on export earnings and hike in debt service cost led to an inability to meet foreign debt commitments and, essentially, a cutoff from access to foreign capital.

Type
Research Article
Information
Journal of Interamerican Studies and World Affairs , Volume 33 , Issue 3 , Fall 1991 , pp. 135 - 168
Copyright
Copyright © University of Miami 1991

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

This article discusses the black market in foreign exchange that existed in Peru prior to the government of President Fujimori, who took office in August 1990. The market continues today, but some of the characteristics have changed significantly due to the process of economic opening now underway.

References

Actualidad Economica (1988a) “El Gobierno de la Coca.” No. 104 (November-December).Google Scholar
Actualidad Economica (1988b) “El mercado y el poder.” No. 103 (October): 8–10.Google Scholar
Aggarwal, R. (1990) “The Nature of Currency Black Markets: Empirical Test of Weak and Semistrong Form Efficiency.” International Trade Journal V, 1 (Fall): 1–24.Google Scholar
Astete, I. and Tejada, D. (1988) “Elementos para una economia politica de la coca en el Alto Huallaga” (AD/PER/86/459 OSPPNUD, October). New York, NY: United Nations.Google Scholar
Bhandari, J. and Decaluwe, B. (1989) “A Framework for the Analysis of Legal and Fraudulent Trade Transactions in Parallel Exchange Markets. ” Weltwirtschaftliches Archiv (June): 233–253.Google Scholar
Briceño, J. and Martinez, J., (1989) “El Ciclo operativo del trafico ilicito de la coca y sus derivados: implicaciones en la liquidez del sistema financiero,” pp. 261-279 in Federico Leon and Ramiro Castro de la Mata, Pasta Basica de Cocaina. Lima, Peru: Centro de Informacion para la Prevencion del Abuso de Drogas (CEDRO).Google Scholar
Business International Corporation (1985-90) Investing, Licensing and Trading Conditions (Peru section). New York, NY: Business International Corp.Google Scholar
1/2 de Cambio (1988) “La paridad y el dolar ocona.” (1-15 October): 6.Google Scholar
Campodonico, H. (1989) “La politica del avestxuz,” pp. 225-257 in Diego Garcia-Sayan (ed.), Coca, Cocaina, y Narcotrafico. Lima, Peru: Comision Andina de Juristas.Google Scholar
Canto, V. (1985) “Monetary Policy, Dollarization, and Parallel Market Exchange Rates: The Case of the Dominican Republic.” Journal of International Money and Finance 4 (September): 507– 521.Google Scholar
Connolly, M. and D., Taylor (1984) “The Exact Timing of the Collapse of an Exchange Rate Regime and Its Impact on the Relative Price of Traded Goods.” Journal of Money, Credit, and Banking 16, 2 (May): 194–207.Google Scholar
Culbertson, W. (1989) “Empirical Regularities in Black Markets for Currency.” World Development 17,12 (December): 1907-1919- (1975) “Purchasing Power Parity and Black Market Exchange Rates.” Southern Economic Journal 13 (June): 287–296.Google Scholar
De Soto, H. (1986) El otro sendero. Lima, Peru: Instituto de Libertad y Democracia.Google Scholar
Dornbusch, R., Valente Dantas, D., Pechman, C., Rezende Rochas, R., Simues, D. (1983) “The Black Market for Dollars in Brazil.” Quarterly Journal of Economics 98 (February): 25–40.Google Scholar
Greenwood, J. and Kimbrough, K., (1987) “Foreign Exchange Controls in a Black Market Economy.” Journal of Development Economics 26 (June): 129–143.Google Scholar
Grosse, R. (1991) “Colombia's Black Market in Foreign Exchange” (International Business & Banking Institute, November; xerox). Miami, FL: University of Miami, Graduate School of International Studies.Google Scholar
Grupo Apoyo (1983) “La Coca en el Peru.” Debate (Diciembre): 45–66.Google Scholar
Gupta, S. (1980) “An Application of the Monetary Approach to Black Market Exchange Rates.” Weltwirtschaftliches Archiv 116: 235–252.Google Scholar
International Monetary Fund (IMF) (1991) Direction of Trade Yearbook 1990. Washington, DC: IMF. International Monetary Fund (IMF) (1989) Exchange Arrangements and Exchange Restrictions. Washington, DC: IMF. International Monetary Fund (IMF) (1988) Exchange Arrangements and Exchange Restrictions. Washington, DC: IMF.Google Scholar
Koveos, P. and Siefert, B. (1985) “Purchasing Power Parity and Black Markets.” Financial Management (Autumn): 40–46.Google Scholar
Kuczynski, P. (1987) “The Outlook for Latin American Debt.” Foreign Affairs 66, 1 (Fall): 129–149.Google Scholar
Lindauer, D. (1989) “Parallel, Fragmented, or Black? Defining Market Structure in Developing Economies.” World Development 17, 12 (December): 1871–1880.Google Scholar
Medio de Cambio (1990) (March 1-15): 18.Google Scholar
Michaely, M. (1954) “A Geometric Analysis of Black Market Behavior.” American Economic Review (September): 627–637.Google Scholar
(El) Nacional (1987) (14 July): this issue cited on p.10 of Actualidad Economica (1988b) [see reference above].Google Scholar
National Narcotics Intelligence Consumers Committee (NNICC), (1988) The NNICC Report 1987 (April). Washington, DC: NNICC.Google Scholar
Nowak, M. (1984) “Quantitative Controls and Unofficial Markets in Foreign Exchange: A Theoretical Framework” (IMF Staff Paper, September). Washington, DC: International Monetary Fund (pp. 404–481).Google Scholar
Olgun, H. (1984) “An Analysis of the Black Market Exchange Rate in a Developing Economy — The Case of Turkey.” Weltwirtschaftliches Archiv 120: 329–347.Google Scholar
Peru Economico (1989) “Dolares y Narcotrafico en el Alto Huallaga.” February: 6.Google Scholar
Pick Publishing Company (19 ) World Currency Yearbook. London, England: Pick Publishing Company.Google Scholar
Pitt, M. (1984) “Smuggling and the Black Market for Foreign Exchange.” Journal of International Economics 16 (September): 243–257.Google Scholar
Sheikh, M. (1976) “Black Market for Foreign Exchange, Capital Flows, and Smuggling.” Journal of Development Economics 3 (March) 9–26.Google Scholar