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LatinNews Daily - 02 December 2019

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In brief: Chile’s central bank intervenes to stabilise peso

* The Chilean peso has rallied against the US dollar after falling to record lows last week, closing the day at Cl$809.46/US$1 on 29 November, after the central bank (BCCh) announced that it would sell up to US$20bn in foreign currency interventions, citing excessive volatility resulting from the continuing socio-political uncertainty and tensions. In a statement, the BCCh announced that between 2 December 2019 and 29 May 2020 it will sell up to US$10bn on the spot market, and further sell up to US$10bn in exchange hedging instruments. “This exceptional measure is consistent with the monetary policy scheme, based on an inflation target and exchange rate flexibility,” the BCCh’s statement reads, adding that it will use “all tools available” to maintain external and internal payments and meet a 3% annual inflation target.