We evaluate the balance sheet effect in the Peruvian economy using information of 114 firms from 1998 to 2009. First, we determine whether the competitiveness effect (positive) is greater than the net worth effect (negative). Since the balance sheet effect is statistically significant, it is the case that the net worth effect is indeed greater than the competitiveness effect. That is, after a real depreciation, firms with dollar denominated debt invest relatively less than firms with sol denominated debt. These results are robust to the estimation method and the inclusion of control variables. In a second step, we estimate the two effects separately. The results show a negative net worth effect and a positive competitiveness effect. Both are statistically significant.