Foreign Exchange Intervention in Peru

Quispe Misaico, Zenón

Publicación:
Foreign Exchange Intervention in Peru

dc.contributor.author	Quispe Misaico, Zenón
dc.date.accessioned	2015-06-17T15:02:30Z
dc.date.available	2015-06-17T15:02:30Z
dc.date.issued	2013
dc.description.abstract	The unprecedented monetary expansion implemented by central banks in developed economies during recent years has induced an extraordinary flow of funds to emerging economies and supported high commodity prices. This has created upward pressures on the value of local currencies and a further expansion of available funds and lending. This situation gave rise to concerns about a possible misalignment of the real exchange rate relative to its equilibrium level, especially because it can be deemed a temporary response to the current phase of the cycle in developed economies, but with a potentially lasting negative impact on the tradable sector of the economy. In Peru, the response to this situation has been an intensification of sterilized intervention in the foreign exchange market and the use of reserve requirements on local banks foreign currency liabilities, reinforcing macro-financial stability in an economy with a partially dollarized financial system. Both instruments have contributed significantly to reducing excessive exchange rate volatility, building up an international reserve buffer, and ensuring a normal flow of bank credit.	en
dc.identifier.uri	https://hdl.handle.net/20.500.14005/1447
dc.language.iso	eng	en
dc.publisher	Universidad San Ignacio de Loyola	es_ES
dc.source	Universidad San Ignacio de Loyola	es_ES
dc.source	Repositorio Institucional - USIL	es_ES
dc.subject	Monetary policy	en
dc.subject	Central banking	en
dc.subject	Foreign exchange intervention	en
dc.subject	Reserve requirements	en
dc.title	Foreign Exchange Intervention in Peru	en
dc.type	info:eu-repo/semantics/article	en
dspace.entity.type	Publication