Sept 26 (Reuters) – Chile’s central bank said on Monday
that its foreign exchange intervention and dollar liquidity
program, which began in mid July, has achieved its objective and
will finalize on Sept. 30.
The central bank said the program had achieved the
“objective of helping the proper functioning of the foreign
exchange market, facilitating the adjustment of the economy and
financial markets to external and internal conditions.”
The institution said that as of Oct. 2, the bank will only
offer stock renewal of forward dollar sales operations, at
market conditions, for the equivalent of $9.11 billion.
“If an auction is declared void, this amount will be
rescheduled for the following week,” the banks said in a
statement, adding that the renewal scheme will remain until Jan.
13, 2023. “Any changes to this renewal mechanism, as a result of
changes in market conditions, will be announced in due course.”
Chile’s central bank announced in July a $25 billion
intervention in the foreign exchange market to support the peso
after it fell to a record low, saying that the currency had
depreciated with unusually high intensity and volatility.
The peso hit 1,045.80 to the dollar in July before the
program was announced. The intervention was able to bring the
exchange rate back to about 875 pesos per dollar, but the
currency hit its lowest point in more than two months on Monday,
closing at 992 pesos per dollar.
(Reporting by Carolina Pulice and Anthony Esposito)