The Central Bank of Chile announced in a statement that the program of foreign exchange intervention and preventive provision of dollar liquidity would expire as scheduled on Friday, Sept. 30.
As of Sunday, Oct. 2, dollar spot operations, foreign exchange swaps, and repurchase agreements will be discontinued.
According to the governing body board, the foreign exchange interventions achieved the goal of “supporting the proper functioning of the foreign exchange market and facilitating the adjustment of the economy and financial markets to external and internal conditions.”
The program was initiated on July 14, when the Chilean peso depreciated sharply to $1,060 in the face of an escalation of the dollar exchange rate in the local foreign exchange market.
With the end of the foreign exchange intervention program, only the renewal of the stock of dollar futures will be offered at market conditions, with an equivalent of $9.11 billion.
The end of the measure comes amid a rebound in Chile’s dollar, which approached $1,000 on Monday on renewed fears of a global recession that, if anything, has led to a slump in copper prices, the country’s main export.
As of Sunday, Oct. 2, dollar spot operations, foreign exchange swaps, and repurchase agreements will be discontinued.
According to the governing body board, the foreign exchange interventions achieved the goal of “supporting the proper functioning of the foreign exchange market and facilitating the adjustment of the economy and financial markets to external and internal conditions.”
The program was initiated on July 14, when the Chilean peso depreciated sharply to US$1,060 in the face of an escalation of the dollar exchange rate in the local foreign exchange market.
With the end of the foreign exchange intervention program, only the renewal of the stock of dollar futures will be offered at market conditions, with an equivalent of US$9.11 billion.
The end of the measure comes amid a rebound in Chile’s dollar, which approached US$1,000 on Monday on renewed fears of a global recession that, if anything, has led to a slump in copper prices, the country’s main export.