Chile central bank eliminates 'encaje' rule

CHILE - Chile's Central Bank on Apr 16 eliminated its "encaje" rule, which requires foreign investors to deposit an amount equivalent to a percentage of their investments with the central bank at no interest.

The encaje, one of a set of rules put in place to restrict capital outflows from Chile, has been set at 0% since 1998. Until now, the central bank had kept the encaje in place as an emergency tool for controlling capital flows.

The central bank has already lifted a number of restrictions o