BCC To See Through Interventions

September 2008 | Risk Summary

The Banco Central de Chile (BCC) announced on September 8 that it will not abandon its daily US$50mn foreign currency intervention schedule in an effort to boost foreign reserves and maintain a weaker peso. Since the BCC announced plans of the ambitious total US$8bn intervention plan for this year, the Chilean peso has sold off by some 18%, seeing the exchange rate reach CLP527.25/US$ on September 8.

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