Peru’s Sol Holds Near Three-Year High After Humala Appointments

Peru’s sol held near its highest level in three years as President-elect Ollanta Humala appointed government and central bank officials that eased investors’ concerns about how he’ll manage the economy.

The currency was little changed at 2.7367 per U.S. dollar at 1:07 p.m. New York time, from 2.7365 on July 22.

Humala named Miguel Castilla, who served as outgoing President Alan Garcia’s deputy finance minister, as his finance minister July 21, and tapped central bank President Julio Velarde to remain in his post. The appointments are “very much positive for Peruvian assets,” BNP Paribas said today in a note to clients.

“The president’s message about his new cabinet, and above all about Velarde and the Finance Ministry was good,” said Ricardo Villamonte, head trader at Banco de Credito del Peru, the country’s largest bank. “Investors feel more at ease and have gotten rid of some of their dollars.”

To contact the reporter on this story: John Quigley in Lima at jquigley8@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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