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LatinNews Daily - 10 August 2021

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In brief: Peru to raise mining taxes

* Peru’s finance minister Pedro Francke has said that the new government led by President Pedro Castillo will increase mining taxes to fund public sector spending. In an exclusive interview with news agency Reuters, Francke said that this could be done without impacting private sector competitiveness if copper prices remain high (Peru is the world’s second largest copper producer, after Chile), and that mining companies which have signed tax stability agreements with the government would not be affected. Francke declined to give more details on the proposed tax reform. A moderate left-wing economist, Francke was appointed by Castillo to reassure investors who are wary of the Marxist-Leninist leanings of Peru’s new government. Francke told Reuters that he is working to regain investor confidence, but Peru’s nuevo sol hit another record low against the US dollar on the day of Francke’s interview with Reuters, trading at PEN4.11/US$1 on 9 August.