December 28, 2016 / 2:30 AM / 2 years ago

Peru cenbank to ease reserve rules following Fed rate hike

LIMA, Dec 27 (Reuters) - Peru’s central bank announced on Tuesday that it plans to slash reserve requirements for deposits in dollars next month to bolster demand for credit after the Federal Reserve hiked U.S. interest rates for the first time in nearly a decade.

The central bank said the marginal reserve requirement for deposits in dollars would drop to 48 percent from 70 percent, bringing it to its lowest level in more than six years.

It added that the reserve requirement for deposits denominated in the local sol currency would ease to 6 percent from 6.5 percent.

The two measures should inject 300 million soles ($89 million) into the financial system, the bank said.

The central bank tightened reserve requirements between 2010 and 2013 when low U.S. interest rates in the wake of the global financial crisis fueled investments in emerging market economies like Peru that strengthened the sol.

The sol has weakened against the dollar since Donald Trump was elected to the presidency in the United States on Nov. 8.

$1=3.37 soles Reporting by Mitra Taj; Editing by Sandra Maler

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