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Senate Seeks Alternatives as New Constitution Risks Rejection

CHILE
  • Despite USDCLP closing closed to unchanged on Wednesday, intra-day weakness for the pair saw the recent selloff extend to 913.33, nearly 14% off last Thursday’s high print around 1,060.
    • BCCh continue with their intervention program, selling $200m in the spot market and $500m in forwards.
  • Chile’s Senate approved a bill that makes it easier to amend the current constitution amid increasing expectations that voters will reject a new charter in a referendum.
    • Senators overwhelmingly voted in favor Wednesday of the bill that lowers the congressional majority needed for constitutional amendments to four-sevenths. Under the current law, changes need either three-fifths or two-thirds. The bill now goes to the Lower House for further discussion. (BBG)

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