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Peru Raises Dollar Reserve Requirements to Tame Credit Growth

Peru’s central bank increased dollar reserve requirements for a fourth consecutive month as it attempts to damp demand for credit in the U.S. currency.

The reserve ratio will rise by 0.25 percentage point for lenders who have less than 50 percent of their U.S. currency holdings at the central bank, according to a statement posted on the bank’s website today. The increase is effective April 1.

Banco Central de Reserva del Peru is reducing the local money supply after demand for dollar credit accelerated last month for the first time since September. The sol appreciated last year at the fastest pace since 2009 as U.S. monetary stimulus fueled dollar inflows into emerging markets. The sol is down 1.5 percent this year after the central bank increased reserve requirements and bought $4 billion in the foreign exchange market.

The sol fell 0.2 percent to 2.5920 at 9:24 a.m. in Lima, according to prices from Datatec.

Dollar credit rose 15 percent in February from the year earlier after a 14.6 percent increase the month before, the bank said in a March 25 report. Sol loan growth slowed to 15.5 percent from 15.7 percent over the same period.

To contact the reporter on this story: John Quigley in Lima at

To contact the editor responsible for this story: Andre Soliani at

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