Peru's economy will need to brace itself for US monetary policy normalisation but exchange rate volatility "will be much lower" than after the Federal Reserve's ‘taper talk' in May 2013, the country's central bank governor Julio Velarde tells Central Banking in a video interview.
"It has affected us before... [and] it's going to affect us when they reduce the amount of liquidity," Velarde said in reference to the Fed's efforts to reverse some of its extraordinarily loose monetary policies.
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