L-T Commitment To Underpin Sol

Proposals by the Banco Central de Reserva del Perú (BCRP) to halt the Peruvian sol's rapid appreciation by dissuading non-resident investors from holding local currency assets are already having the desired effect. Since announcing plans to raise the minimum reserve requirements for banks on May 1, most notably tripling reserve requirements on non-resident sol deposits (to 120% from 40%), the sol has seen its biggest depreciation in 13 years, dropping by some 3.6% since April 10.

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