Peru | The Central Bank Resumes Spot FX Market Intervention

Summary

After a five-year pause, the BCRP resumed direct intervention in November 2025 through dollar purchases in the FX spot market. The measure aims to mitigate episodes of excessive volatility in the sol, without altering the exchange rate trend or replacing the role of the market.

Key points

• Key points:
• FX intervention seeks to smooth excessive volatility, not to defend a specific exchange rate level.
• The BCRP acts as a liquidity provider in a relatively shallow FX market.
• This approach lowers transaction costs and the risk premium on the sol.
• Interventions are expected to remain tactical and intermittent amid appreciation pressures.

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