Peru’s Finance Minister May Calm Markets But Challenges Remain

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Peru President Pedro Castillo’s decision to install a former World Bank economist as his new finance minister may ease the pain in one of the world’s worst-performing markets but challenges still lie ahead, according to two of the nation’s former finance heads.

Pedro Francke was sworn in late Friday evening following a delay that unnerved investors. Earlier in the day, the sol fell to a record low and yields on the country’s benchmark bond due 2031 spiked to seven-week highs after the president failed to appoint a finance minister on Thursday during a ceremony to name his cabinet.

“The appointment of Pedro Francke is positive,” David Tuesta, who served as the nation’s finance minister in 2018, said in an interview Sunday. “Investors need to confirm that the economic stance of the government is pro-market by observing their…

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