According to the Central Reserve Bank (BCR), the EMBIG Peru decreased by 6 basis points to 156 bps from February 14 to 21, 2024.
At the same time, the EMBIG Latin America saw a decrease of 11 basis points to 373 basis points during that period.
The country risk assesses a nation’s capacity to fulfill its financial responsibilities, taking into account both the political risk involved, and is used to determine its international credit rating.
High country risk results in reduced foreign investment and decreased economic growth, potentially causing unemployment and decreased wages.
This index serves as a guide for investors as it shows the level of risk involved in conducting business in a particular country.
It is important to understand that projects with higher risks are less likely to generate returns in line with the funds invested, while projects with lower risks are more appealing to investors.
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