LIMA — Peru’s Congress ousted President Jose Jeri Tuesday amid a corruption probe just four months into his term, installing hard-left lawmaker Jose Balcazar as interim leader until July 28, marking the seventh president in under a decade, yet markets barely flinched.
Balcazar, 83, pledged “unquestionable” April 12 elections and no economic experiments in the world’s No. 2 copper exporter, reassuring investors in a commodity-driven economy shielded by a credible central bank. Sovereign bonds like the 2060 issue dipped to 56 cents on the dollar Thursday but held steady overall, trailing only Chile in regional credit spreads.
Analysts credit Peru’s mining resilience and investor desensitization to chronic instability, unlike neighbors where upheaval sparks selloffs. The fragmented race, with 42% of voters undecided per Ipsos, right-wing Lima Mayor Rafael Lopez Aliaga leading polls, and Keiko Fujimori trailing, features a record candidate field and new Senate elections. Balcazar’s past, including a disbarment and child marriage comments, fuels concerns over credibility.
Congressional overreach has disillusioned voters, but credible polls could sustain market calm.