Latin America equity and bond investors have been left to consider the cost of political volatility in Peru, after the relationship between the country’s president Martín Vizcarra and its congress completely broke down on Monday.
Vizcazza dissolved congress late on Monday, in frustration with its inability to pass his anti-corruption reforms. In response, congress fired Vizcarra and swore in the vice-president.
The FTSE Peru index fell by 5.2% between Friday’s close and Tuesday’s. The reaction in the bond market was more muted.