UPDATE 1-Peru’s central bank chief Velarde will stay on for another term -source

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By Marco Aquino

LIMA, Aug. 9 (Reuters) – Peruvian central bank president Julio Velarde has agreed to remain in office for an additional term, a source close to his decision said on Monday, a move intended to calm markets shaken by the election. of the new left of the country. wing chair.

“Julio Velarde has agreed to continue in this role and is following conversations to define the members of the bank’s board of directors,” said the source, who declined to be identified as the decision has yet to be made. public.

A central bank representative was not immediately available for comment.

Velarde, a prestigious central banker, has held this position since 2006 and has helped make the Peruvian economy one of the most stable in Latin America. Peru’s central bank is independent from the government, with the remainder of the bank’s board divided between nominees put forward by the executive and the legislature.

Newly-appointed president Pedro Castillo has asked Velarde to stay in the role. Velarde initially said he planned to retire later this year.

Peruvian markets were battered by the election of Castillo, with the local sol currency hitting an all-time high against the dollar on Monday.

Castillo is a member of a Marxist-Leninist party, has appointed several hard-line supporters in his cabinet and is pushing to overhaul the country’s constitution. (Reporting by Marco Aquino; Editing by Christian Schmollinger and Leslie Adler)

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