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BCCH Announces Program To Increase Reserves by $10 Billion

CHILE
  • Announced late Friday, the Board of the Central Bank of Chile has decided to initiate a program to replace and expand international reserves for a total of $10 billion, according to a release on its website which can be found here: https://www.bcentral.cl/contenido/-/detalle/consejo-del-banco-central-de-chile-anuncia-programa-de-reposicion-y-ampliacion-de-reservas-internacionales-1
  • The program intends to strengthen the country's international liquidity position and, in this way, contribute to the necessary process of slack recovery that manifests itself in different sectors of the economy. This, in a context where the local exchange and financial market operates normally.
  • The program will begin on Tuesday June 13 and will last for twelve months where the BCCh will buy $40 million per day via competitive auctions. The central bank will sterilize monetary effects through issuance of promissory notes. In the event of relevant changes in market conditions, the BCCh may make adjustments to this program, which it will communicate in a timely manner.

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