Chilean central bank pledges to sell up to $25 billion to defend peso

Currency plummets by 4% to new record low against US dollar following 75bp rate hike

Central Bank of Chile
Photo: Central Bank of Chile/Wikimedia Commons

The Central Bank of Chile announced a new foreign exchange intervention programme on July 14 to support the weakening national currency.

The central bank will sell up to $25 billion of its reserves to support the peso from July 18 until September 30. This is a considerable effort, considering international reserves stood at $45.8 billion at the end of June.

The decision came barely a day after the central bank’s board increased interest rates by 75 basis points to 9.75%. Despite this measure

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