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Central Bank To Reduce FX Forwards Operations

CHILE
  • According to a press release, the BCCh have announced that they will begin a process of gradual reduction of its selling position in the NDF market, starting this week.
  • “The Board adopted this determination, considering that the operation of the exchange market has evolved adequately, even when responding to recent external shocks, facilitating the adjustment of the economy and financial markets.”
  • Beginning today, the bank will begin to reduce its stock of NDFs of $9.11b by partially renewing maturities, at a rate of 1/10 a month. The average daily reduction would be $50m and the position would be closed in 10 months.
  • The daily schedule for renewal and rescheduling of forward sales will be reported every Friday. Link to statement is here: https://www.bcentral.cl/contenido/-/detalle/banco-central-inicia-proceso-de-reduccion-gradual-de-sus-operaciones-forward

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