July 25, 2022 12:11 GMT
- Consolidatory price action in USDCLP last Thursday showed signs that the Peso’s sharp rally, following the announcement of FX intervention measures, might be losing momentum. Indeed, on Friday, contrary to the weaker Dollar Index, the Chilean peso fell 3% and was comfortably the weakest currency across the EM space.
- The announcement that the BCCh would reduce the daily intervention volumes this week exacerbated the price action somewhat.
- Announced late last week as part of ongoing guidance for the BCCh FX intervention program:
- Chile Central Bank plans this week to sell $750 million in the spot market and $1.75 billion in forwards, as well as purchasing $400 million in swaps. This adds up to a reduction of $1 billion dollars compared to last week.
- Latest Cadem Survey Shows Narrowing Of Rejection/Approval Gap
- Rejection falls to 47% (-5pts) and the gap with Approval, which rises to 39% (+2pts), shortens from 15pts to 8pts. 14% are undecided (+3pts).
- Chile’s Codelco will “gradually” restart copper mining in Andina and Radomiro Tomic divisions on Monday, after works were halted following two deaths, the company said in a statement.