LIMA: Peru's central bank on Friday gave private pension funds more room to invest in foreign markets, a bid to partially offset inflows of dollars that have pushed the local currency's rally to historic highs.
The decision, which lifts the foreign investment ceiling for the country's pension funds to 32 percent of their holdings from 30 percent, will permit an additional $750 million to be invested overseas.
The funds manage some $30 billion in assets. The monetary authority last raised the ceiling, from 28 to 30 percent, in September 2010.
The central bank bought a record $15 billion last year as the sol currency gained 5.7 percent and has raised reserve requirements on banks several times to temper the sol's advances. It is near a 16-year-high of 2.55 per US dollar.
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