LIMA Dec 27 Peru's central bank announced on
Tuesday that it plans to slash reserve requirements for deposits
in dollars next month to bolster demand for credit after the
Federal Reserve hiked U.S. interest rates for the first time in
nearly a decade.
The central bank said the marginal reserve requirement for
deposits in dollars would drop to 48 percent from 70 percent,
bringing it to its lowest level in more than six years.
It added that the reserve requirement for deposits
denominated in the local sol currency would ease
to 6 percent from 6.5 percent.
The two measures should inject 300 million soles ($89
million) into the financial system, the bank said.
The central bank tightened reserve requirements between 2010
and 2013 when low U.S. interest rates in the wake of the global
financial crisis fueled investments in emerging market economies
like Peru that strengthened the sol.
The sol has weakened against the dollar since Donald Trump
was elected to the presidency in the United States on Nov. 8.
(Reporting by Mitra Taj; Editing by Sandra Maler)