LIMA, March 27 Peru's central bank raised
deposit requirements on bank accounts denominated in dollars on
Wednesday to curb heavy capital inflows that have lifted the
local currency to approach a 16-year high.
The rules, designed to slow the pace of credit growth and
encourage long-term investment instead of short-term, will take
effect Monday in the fast-growing economy.
It was the eighth such move since May.
But both the central bank and the finance ministry have
ruled out the use of capital controls and are relying on
traditional measures to soak up excess dollar liquidity.
The central bank has kept its benchmark interest rate at
4.25 percent for about two years as inflation cools and the
economy is on track to grow around 6.3 percent this year - one
of the best-performing nations in Latin America in terms of the
pace of growth.
The finance ministry has also said it will buy about $4
billion on the spot market this year to help the central bank
soak up dollar liquidity.
The sol is trading around 2.59 per dollar.