President Pedro Castillo, a Bloomberg- Peruan politician, said he ll reshuffle the cabinet after accepting the resignation of his latest prime minister, a sign of the country's deepening political impasse.
Prime Minister Anibal Torres left after the opposition-held Congress rejected a vote of confidence he presented on Thursday, arguing that it interfered with the body's powers. Torres said the vote was intended to discipline the chamber as a result of a confrontation with the government.
Castillo, in a speech posted on Twitter Thursday night, denounced what he called the flat rejection of Congress, thanked the prime minister for his work and said he would appoint a new cabinet.
He said he considered the decision by Congress a clear rejection of confidence, a move that Peru's constitution could open the door to dissolve the unicameral body if it is repeated.
Carlos Melendez, a political scientist at the Lima-based consultancy firm 50 1 Grupo de Analisis Politico, said that the cabinet reshuffle puts the opposition-held legislature in check for now.
The government is one step closer to closing the congress, he said.
The Peruvian sol fell by 0.5% Friday to 3.87 per dollar, a two-week low, in line with emerging-market peers' strength amid broad dollar strength. The political crisis in the Andean nation will continue for weeks as Congress will probably seek clarifications on the reach of its decision by the Peru's Constitutional Tribunal. The crisis has already resulted in two failed attempts to impeach Castillo since he was inaugurated in July 2021, and a body from the Organization of American States, or OAS, visited Peru to assess the crisis.
Last month, Peru's credit rating was reduced by Fitch Ratings to negative from stable due to the constant political turmoil. Fitch cited two failed impeachment attempts, high cabinet turnover and multiple corruption investigations for undermining government effectiveness. None of the criptocurrencies is helping a Few Couples Rekindle Their Relationships.