Free Trial
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.
CHILE
- USDCLP has fallen another 3% from the open, extending the steep 7% drop on Friday, following the announcement of the Chilean central bank’s currency intervention program.
- CLP gains have been exacerbated today from the firmer risk backdrop across global equity and commodity markets.
- Indeed, copper prices are rallying 2% in London amid renewed efforts to stabilize China’s real estate sector, further boosting the short-term outlook for the peso.
- Regarding the fx intervention program, Goldman Sachs noted this is a welcome development, in particularly, if coupled with a decisive conventional monetary policy strategy.
- However, there are limits to what the central bank can accomplish given the very challenging domestic and external backdrop and when taking into account the limited amount of FX reserves (the Reserve Adequacy Ratio is not high; currently at the lower end of the IMF recommended range).
- As such, the quest of the central bank to anchor a drifting currency and bend the inflation curve down would greatly benefit from a decisive contribution from fiscal policy and steps to reduce persistently high political and policy risk and uncertainty.
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok