“We are telling foreign and national investors that we must have social funds. That means that the first thing to do around the community is rural electrification and and water for agricultural products,” Lerner said. [Peru ETF: Rising Economy and Gold Prices]
The iShares MSCI All Peru Capped Index Fund (NYSEArca: EPU) could advance on the news. EPU has gained 3.7% for the past month. If foreign investment flows in this can help the fund as well as the mining industry. Mining and mining operations account for most of this ETF. [Gold Prices Impacting Single-Country ETFs]
Peru also earned a credit rating upgrade from Fitch Ratings, which will support the country’s reputation as a viable investment destination. This upgrade may also lead to greater capital flow, as the country now has a BBB rating. Less uncertainty surrounding macroeconomic policy and the changes in the fiscal contributions of the mining sector during Humala’s administration have contributed to the upgrade.
Tisha Guerrero contributed to this article.