Study Note No. 64: Management of International Reserves - July 2026

NOTES FROM THE CENTRAL BANK OF PERU
No. 64 – September 10, 2026
Central Bank of Reserve of Peru
MANAGEMENT OF INTERNATIONAL RESERVES: JULY 2026

1. Situation of International Investments
   As of the close of July 2026, the investment portfolio maintained the following composition: 79 percent invested in securities, 16 percent in deposits, and 5 percent in gold. Regarding its composition by instrument type, a conservative risk profile was maintained with predominance of investments in the highest quality securities.

In the maturity structure of the investment portfolio, no changes were observed relative to the previous month. Furthermore, an increase was observed in investments with credit ratings of AA+/AA/AA- and a reduction in those with credit ratings of A+/A/A-. The duration of the total portfolio at the close of July was 2.00, an increase of 0.02 from that obtained at the close of the previous month.

The balance of the Foreign Exchange Position as of 31.07.2026 amounted to USD 68,858 million. This aggregate does not incorporate assets financed with obligations to the public sector and to local financial entities.

The effective exposure to the US dollar in the Foreign Exchange Position was 82 percent as of the close of July, while that of other currencies stood at 11 percent.

2. External Context
   In the United States, the Federal Reserve at its meeting on July 29 agreed to maintain the reference interest rate unchanged in the range of 3.50 - 3.75 percent. The annualized growth of GDP in the second quarter of 2026 was 1.5 percent (advance data). In June, the unemployment rate decreased from 4.3 to 4.2 percent, and the underlying Consumer Price Index (CPI) recorded an annual increase of 2.6 percent.

In the Eurozone, the European Central Bank at its meeting on July 23 decided to maintain the interest rates for the deposit facility, main refinancing operations, and marginal lending facility at 2.25 percent, 2.40 percent, and 2.65 percent, respectively. In the second quarter of 2026, GDP growth was 0.4 percent compared to the previous quarter and 1.0 percent compared to the second quarter of the previous year. In June, annual inflation was 2.8 percent and underlying annual inflation was 2.4 percent.

In the United Kingdom, the Bank of England at its meeting on July 30 decided to maintain its reference rate at 3.75 percent. In July, the GfK consumer confidence index increased from -23 to -17. Furthermore, in June, annual inflation decreased from 2.8 to 2.6 percent, while underlying annual inflation remained at 2.6 percent. In May, the unemployment rate remained at 4.9%.

As of the close of July, 1-month and 3-month SOFR rates stood at 3.66 and 3.75 percent, respectively. During the month, against the US dollar, the euro, the British pound, and the yen appreciated by 0.92 percent, 1.67 percent, and 3.27 percent, respectively. In July, Japan's Nikkei index fell 8.14 percent, while Germany's DAX increased by 2.53 percent. In the United States, the S&P 500 index decreased by 0.13 percent, contrary to the increase in the Dow Jones by 0.32 percent. Additionally, the price of gold increased by 0.95 percent, ending at USD 4,046.15 per troy ounce, and the price of West Texas Intermediate oil rose by 21.83 percent, closing with a quotation of USD 84.67.

Portfolio Structure (%) 31.07.2026
Foreign Currency Deposits 16
Securities 79
Gold 5

Maturity Structure (%) 31.07.2026
0-3 months 22
3-12 months 10

1 year 68

Long-Term Rating (%) 31.07.2026
AAA 8
AA+/AA/AA- 83
A+/A/A- 9

Currencies (%) 31.07.2026
USD 82
Other Currencies 11
Gold 7

NOTES FROM THE CENTRAL BANK OF PERU
No. 64 – September 10, 2026
Central Bank of Reserve of Peru
GLOSSARY OF TERMS

Foreign Exchange Position. - It is the difference between the assets and liabilities in foreign currency of the Central Bank of Reserve of Peru, both international and with residents. The Foreign Exchange Position is constituted by the Bank's assets that do not have third-party obligations as counterparties and, therefore, is the part that can be diversified in gold and different currencies.

Investment Portfolio. - It is the set of international assets that are administered internally.

Preparation: Investment Policy Department
Sub-division of International Investment Analysis International Operations Management