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BCCh President Comfortable With Current Level Of Reserves

  • According to central bank president, Rosanna Costa, the BCCh has a “solid” level of international reserves to confront any problem, she noted in an interview with Radio Duna. Having previously suspended a program to build up its international reserves in October, Costa added that at some point, it will return, without providing any additional details.
  • Furthermore, Costa stated the process of eliminating economic imbalances in Chile is advancing well, with headline inflation slowing and core inflation slowing faster than previously expected. She also noted that the crisis among private health insurers, or Isapres, isn’t a threat to Chile’s financial system.
  • The trend outlook in USDCLP remains bearish, and the recent shallow recovery is considered corrective. Key short-term support at 873.00, the Nov 3 low, has been cleared. The break of this level strengthens a bearish threat and signals scope for a deeper retracement towards 837.45, the Aug 25 low. The pair is testing resistance at 882.06, the 50-day EMA. A clear break would signal scope for a stronger correction near-term, towards 900.00 and note that key resistance is at 924.67, the Nov 13 high.

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