Juan Velasco Alvarado of the Velasco administration's economic policies is still debated today. As the Peruvian military government ran deeper into debt, it was forced to devalue the currency and run inflationary policies. This however, was in part due to the 1970s Energy Crisis, which also affected Peru and made it impossible for the Velasco administration to fund some of its most ambitious reforms. In foreign policy, in contrast with his 1970s Latin American contemporaries, which were mostly right-wing military dictatorships, he pursued a partnership with the Soviet bloc, tightening relations with Cuba and Fidel Castro and undertaking major purchases of Soviet military
Juan Velasco Alvarado another uprising or a takeover from the APRA party, seized absolute power and close down Congress, almost all of whose members were briefly incarcerated. General Velasco seized power on October 3, 1968, in a bloodless military coup, deposing the democratically elected administration of Fernando Belaúnde, under which he served as Commander of the Armed Forces. President Belaúnde was sent into exile. Initial reaction against the coup evaporated after five days when on October 8, 1968, the oil fields in dispute were taken over by the Army. The coup leaders named their administration the Revolutionary Government of the Armed Forces, with