PERU: Central Bank Raises Reserve Requirements On Foreign Deposits.

BLOOMBERG/   The Banco Central de Reserva  raised the marginal reserve requirement for foreign banks to 120% of their short-term sol deposits, up from the current 65%. Experts believe the new terms will slow the SOL's appreciation. "It’s not going to reverse the SOL’s trend but may cause it to stabilize,” said one observer. The SOL gained 3.2% so far in 2010, the seventh-best performance among 25 emerging market currencies.

PERU: Central Bank Not Yet Considering Capital Controls Even As GDP Surges.

WSJ/    Central bank President Julio Velarde said Peru isn't considering capital controls even as it tries to prevent the SOL from appreciating rapidly. Interest rate raises and larger bank reserve requirements have helped to keep inflation at bay while GDP has surged nearly 8.2% in the first half of 2010. Officials say they don't have a target rate for the sol but have bought around $6.5 billion usd in the market. The sol has appreciated 3% against the usd so far in 2010.