LIMA, April 29 Peru's central bank said on
Monday it was loosening rules for lenders making longer-term
loans on homes and autos denominated in the sol currency
as part of a bid to "de-dollarize" the economy.
Lenders making the loans will face slightly less demanding
margin rules as measured by their effective assets, the central
Around half of Peru's banking system consists of accounts
denominated in U.S. dollars.
The sol is trading near a 16-year-high. The appreciation of
the sol, especially over the past two years, has encouraged more
people to take on loans in dollars with the hope that their loan
payments will fall if the sol extends its gains.
Despite the latest move, the central bank has repeatedly
raised deposit rules on bank accounts in dollars over the past
two years to curb the pace of credit growth and inflows of
foreign cash into the economy, which is forecast to grow about 6
percent this year.