LIMA, July 22 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
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.