LIMA, Sept 4 The central bank bought $80 million
in the local spot market on Tuesday to prevent gains of the sol
currency, which finished bidding 0.12 percent weaker at 2.610
The sol has been trading at its strongest levels in 15 years
despite frequent interventions, bidding 2.607 per dollar at
market's close yesterday.
So far this year the central bank has bought $10 billion as
the sol has strengthened 3.3 percent against the dollar. The
bank's total international reserves have swollen to almost $60
Last week the central bank raised reserve requirements to
offset the sol's appreciation and to slow the country's rapid
credit expansion as stimulus measures put in place by the
world's major central banks have boosted trading.
Abrupt fluctuations in the sol have long concerned officials
because about half of Peru's bank deposits are held in dollars
and many people and companies earn money in one currency but owe
debts in the other.
Traders consulted by Reuters said high foreign liquidity,
local sol purchases to pay seasonal taxes and higher than
expected inflation have all contributed to the sol's recent
Year-over-year inflation in August was 3.53 percent, higher
than July's 3.28 percent and the central bank's target range of
The sol has been bidding at 2.606 per dollar in informal