Velarde Says Peru May Allow Pension Funds to Invest More Abroad

Peru’s central bank may allow the country’s pension funds to invest more abroad to cool demand for the sol, said bank President Julio Velarde.

The bank’s board may increase the ceiling on overseas investment to 34 percent of the portfolio “in the near future,” if the funds’ foreign holdings are nearing the current 32 percent limit, Velarde said in an interview in Chicago yesterday. Policy makers may increase the limit each quarter, he said.

To contact the reporter on this story: Oliver Renick in Chicago at orenick1@bloomberg.net; John Quigley in Lima at jquigley8@bloomberg.net.

To contact the editor responsible for this story: Andre Soliani at asoliani@bloomberg.net.

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