Go Finance Report - Chile's central bank said it plans to buy $ 12 billion. This was done as the first market intervention to cope with exchange rate fluctuations. Chile was the last time to intervene on the currency market in April 2008.
With the United States dollar (U.S.) recorded for 31-month low, the central bank said it would start buying the dollar began on 5 January that is expected to relieve the pressure that occurred since last December.
The statement came after the dollar reached its lowest point to 466 pesos per USD. Dollar dropped by 7.8 percent against the peso in 2010, and it is one of the worst performances in the region.
Peso also strengthened recent times due to strong copper prices, which is Chile's main export.
"What we do is to support domestic producers, especially our exports in agriculture and industrial sectors that depend on exchange rates. This is expected to influence exchange rates," said Minister of Finance of Chile Felipe Larrain, as quoted by AFP on Tuesday (04/1/2011). (GoFinance)
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