Peru Plans to Limit Bets Against Sol in Derivatives Market
This article is for subscribers only.
Peru plans limits on currency derivative trading to smooth out swings in the sol as policy makers seek to lower interest rates, central bank President Julio Velarde said.
The limits will be announced within the next month and may help reduce volatility in the Peruvian currency in 2015, Velarde told reporters in Lima today. Investors buying dollars in the derivatives market as they bet against the sol is the main reason for declines in the local currency, he said.