10 February 2011

PERU: Central Bank Resumes Buying $100 Million USD Monthly To Stem Currency Rise.

BLOOMBERG/
    Peru's sol has climbed 1.4 percent vs the usd this year, the second-biggest advance in Latin America.
    Now the central bank says it will resume buying dollars again this month and may raise interest rates for the seventh time since May.
     The current benchmark rate is 3.25%.
     The central bank has bought $274 million in the foreign exchange since 01 Feb.
     Its congress also voted to lower the VAT sales tax to 18% from 19% and approved a lower financial transactions tax to 0.005% from the current 0.05%.
     Peru's GDP grew over 8% in 2010.