The bank said that Peru has also taken some steps, raising reserve requirements on local and foreign currency bank deposits and selectively intervening in currency markets, citing high international liquidity and exceptionally low international interest rates.
However, that capital controls and sustained interventions to prevent currency appreciation could involve significant risks for the economy over the medium term, the bank noted.
Overall growth in the Latin American and the Caribbean region is expected to accelerate to 3.5 percent in 2013, an increase of 3 percentage points compared to the forecast for 2012.
The WB estimated Brazil's GDP growth to expand 3.4 percent in 2013, Mexico's 3.3 percent, Chile's 5.1 percent, while Colombia's and Argentina's is expected to increase 3.8 and 3.4 percent, respectively.
(END) DOP/RES/LOG/MOC