Peru to Buy Back as Much as $2 Billion in Bonds
Peru to Buy Back as Much as $2 Billion in Bonds
By Andres R. Martinez - Jan 26, 2013 6:47 AM CT
Peru will buy back as much as $2 billion in international bonds next month, more than was initially planned, and the treasury will begin buying dollars to help stem the appreciation of the sol, Finance Minister Luis Castilla said.
Peru’s sol gained 5.7 percent last year, the best annual performance since 2009, even after the central bank purchased a record $13.9 billion in the spot market to soak up excess greenbacks.
“The great challenge we have right now is how to deal with the entrance of capital into our country that’s making the currency stronger,” Castilla said in an interview in Davos, Switzerland. “We aren’t opting for capital controls at the moment. The central bank can continue intervening aggressively.”
Peruvian officials are studying which securities to target in the buyback and will seek to purchase $1 billion to $2 billion in foreign debt, he said. Castilla in December had said Peru would purchase as much as $1.5 billion of foreign debt.
http://www.bloomberg.com/news/2013-01-26/peru-to-buy-back-as-much-as-2-billion-in-bonds.html
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