Chile central bank to carry on with Forex intervention
On Monday, Central bank of Chile announced that in spite of peso reversing a jagged appreciation, the bank would continue with the $8 billion foreign exchange intervention program, just as planned.
Central bank said that it would move on with the plan of buying dollars of worth 50 million, at daily auctions. The plan was initially foreseen in April after the launch of its intervention program, aimed at boosting and strengthening sap peso and reserves. However, with the rescue of mortgage lending giants Fannie Mae and Freddie Mac by United States boosting the American currency, Monday witnessed a peso closing at its weakest and lowest since august 2007.
For year-to-date, peso has fallen down to 5.5 percent and around 18 percent after the launch of intervention program in the month of April. The central bank plans is to purchase around $8 billion dollars by 12th of December.
After the Friday’s close of 524.00/524.50 per dollar, Monday witnessed peso CHILJ
In august, one of the board member of the bank confirmed purchase of $4.45 billion dollars in four months at a standard rate of around 488.72 pesos per dollar, as per the program.