clarified that the monetary institution only sets the reference rate for credit operations in domestic currency (soles).
"Our Central Bank (BCR) cannot set dollar or euro rates; that is determined by other central banks," he stated.
Likewise, Velarde noted that the debt held by State-owned oil company Petroperu is mainly in foreign currency.
"Petroperu's debt is not in soles; it is basically in dollars or euros," he emphasized.
The BCR chief made these remarks following the presentation of the silver coin issued to commemorate the centenary of Tarata province's reincorporation into Peru.
Mutual Funds
On another matter, the BCR head noted that part of the fixed-term deposits are being shifted to mutual fund investments due to more attractive rates.
"Personally, I have noticed that I, too, have increasingly moved into mutual funds, and probably many other people as well," Velarde said.
In this regard, he mentioned that part of mutual fund investments include fixed-term deposits and noted that Peruvian banks face no liquidity problems.
Change of coat of arms
Regarding the Defense Ministry's bill on the regulation to change the designs of the coat of arms on Peruvian currency, the authority did not deem it necessary and expressed hope for reflection on the matter.
"The coat of arms has been used on coins for over 150 years. That means, the identity of the coins corresponds to the coat of arms that has been in use for 150 years. That is the identification of the coin," Velarde stated.
"Changing that makes little sense. If it has been maintained for 150 years, that is its legitimate use, but well, the law must be obeyed. Hopefully, they can reflect and amend that part," he added.
Preventive detention of former President Vizcarra
On another matter, Julio Velarde said it is unfortunate for the country's image that several former presidents are being held in a special prison due to the legal proceedings they face.
"It is unfortunate for the country's image, honestly. Today's Financial Times makes specific reference to this case —the former presidents being held in a special prison. The Financial Times, which is the most important newspaper, highlights this type of news about Peru," he said on Thursday.
Nonetheless, Velarde ruled out that this would affect the Peruvian economy.
"I don't think it will have much impact, but it does give the image of a country with problems," he emphasized.
Commemorative coin
The BCR governor stated that Tarata province should never have been occupied after the War of the Pacific in the 19th century, as it was not part of the Treaty of Ancon.
It was returned to Peru following the arbitration of U.S. President Calvin Coolidge, who ruled in Peru's favor.
He also highlighted the presence of U.S. General John Pershing, a World War I hero, at the ceremony marking the handover of Tarata to Peru.
"He (Pershing) was here for the plebiscite, even at the time of Tarata's return. It is significant that one of the legendary figures of the 20th century was here taking part," Velarde pointed out.