Intervention Causes 20-Year Record Decline of Chilean Peso

The Chilean peso dropped today most in twenty years after the central bank announced its intention to purchase $12 billion in the foreign-exchange market.

Jose De Gregorio, the Governor of the Central Bank of Chile, also presented yesterday the plan to purchase $50 million per day from January 5th to February 9th. Previously the peso surged as the rally of copper prices improved the outlook for Chile’s economy.

USD/CLP climbed today from 487.85 to 492.50 as of 12:27 GMT, the biggest decline since June 1989.

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