Peru's central bank loosens reserve rules for accounts in soles
LIMA Dec 26 (Reuters) - Peru's central bank will loosen reserve requirements on commercial banks for funds denominated in the local sol currency starting January 1, the bank said in a statement.
The central bank has lowered reserve requirements several times since May to stimulate lending as the economy expands at a slower pace than forecast.
The new rules lower the average and marginal reserve requirements in soles to 14 percent from 15 percent, and cuts the requirement for foreign trade debt to 14 percent from 20 percent.
Central Bank President Julio Velarde said on Friday that the monetary authority was more inclined to loosening reserve requirements further than to lowering the benchmark interest rate, as it did in November.
"This new measure will allow the freeing up of more than 1 billion soles ($359 million)," the central bank said in a statement on Wednesday.
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