The Central Bank of Peru reported that mortgage credit for home purchases increased 5.5% year on year in March, reaching PEN 71,248 million, with growth mainly driven by loans denominated in domestic currency. Mortgage credit rose 0.4% from February, led by a 0.5% monthly increase in soles-denominated lending. Mortgages in soles totalled PEN 66,385 million, up 6.5% year on year. Dollarization remained low, with only 6.8% of mortgage credit denominated in US dollars in March; the central bank linked the preference for soles to reducing households’ exposure to exchange-rate fluctuations.