Economy & Business - July 2025

Julio Velarde, president of Peru’s central bank (BCRP), issued a rare public criticism of his country’s finance ministry on 20 June. Velarde asserted that the finance ministry’s opinion was formerly respected and worked closely with the central bank, but that since 2016 there has been a tendency to ignore the opinions of experts and technocrats. Velarde has been openly critical of a bill that would make changes to sales tax (IGV) collection, benefitting local governments over the central treasury – a move that Velarde warns will have fiscal consequences for the national government.