Peru's central bank has sold $10.3 bln in FX market so far this year -official

BY Reuters | ECONOMIC | 06/11/21 01:54 PM EDT

LIMA, June 11 (Reuters) - Peru's Central Bank sold $10.3 billion so far this year in the foreign exchange market, the largest selloff ever for a half-year period, as Peru's currency fell to record lows amid electoral jitters, a senior bank official told reporters on Friday.

Adrian Armas, who heads economic studies at Peru's Central Bank, added that it sold $4.3 billion in the spot market and $6 billion in foreign exchange derivatives. (Reporting by Marco Aquino)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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