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BCCh Downplays Announcement, Sell-Side See USDCLP Spike As Opportunity

CHILE

Markets are digesting the announcements from the central bank regarding the increase in their international reserves. As mentioned yesterday, the BCCH released a Q&A statement later in the day. The key point is they do not believe it to be FX intervention and their measures should allow exchange rates to reflect their true fundamentals.

  • Analysts have also noted that a similar announcement in 2011 saw a similar reaction spot markets; however, the impact of the moves were notably short lived.
  • Notable sell-side also released notes using the price action spike to either take profit on USDCLP longs or reengage in shorts. USDCLP opens a touch weaker from yesterday's close.

*Separately, Chilean President Sebastian Pinera speaks at the Enade business summit.

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