Free Trial

GS Note Following Announcement Of Reserve Purchase Program

CHILE

Announcement of new $12B reserve purchase program, enables Chile to phase out dependence on the IMF Flexible Credit Line. Additionally, Chile can rebuild external buffers following the period of social unrest in 2019. Both these measures are considered to be prudent long-term macroeconomic policy strategies.


Overall, bullish case for CLP remains intact:

  • Recovery in industrial activity and copper prices should be supportive
  • Chile stands out in the region, both in terms of substantial and broad-based vaccine pre purchase commitments as well as the ongoing vaccine effort.
  • Finally, the ongoing growth recovery in Chile increases risks of an eventual normalization of monetary policy.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.