Peru's central bank loosens deposit rules to boost liquidity

LIMA, July 22 Mon Jul 22, 2013 7:07pm EDT

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LIMA, July 22 (Reuters) - Peru's central bank on Monday said it was loosening reserve requirements for banks to encourage financial transactions in the local sol currency as economic growth slows on weak mineral exports.

The rules, which will go into effect Aug. 1, include lower average and marginal reserve rates on bank accounts denominated in soles and in dollars, and are intended to "favor financial intermediation, especially in soles," the central bank said in a statement.

The central bank raised banking reserve requirements several times in 2012 and early this year to curb heavy capital inflows that pushed the sol to a 16-year high.

The sol has weakened more than 9 percent against the dollar so far this year.

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