14 de agosto de 2020
ÚLTIMAS NOTICIAS:
Hispanic World

Chilean central bank to sell $20 bn to try and halt peso's fall

Santiago, Nov 28 (efe-epa).- The Chilean Central Bank on Thursday announced that it will intervene in the currency market by selling up to $20 billion in foreign currency instruments to try and halt the decline of the peso, which earlier in the day plummeted to a new historic low of 828.36 per US dollar due to the serious ongoing social crisis in the South American country.

 The Chilean Central Bank on Nov. 28, 2019, announced that it will intervene in the currency market by selling up to $20 billion in foreign currency instruments to try and halt the decline of the peso, which earlier in the day plummeted to a new historic low of 828.36 per US dollar due to the serious ongoing social crisis in the South American country. EFE-EPA/File

The Chilean Central Bank on Nov. 28, 2019, announced that it will intervene in the currency market by selling up to $20 billion in foreign currency instruments to try and halt the decline of the peso, which earlier in the day plummeted to a new historic low of 828.36 per US dollar due to the serious ongoing social crisis in the South American country. EFE-EPA/File

Santiago, Nov 28 (efe-epa).- The Chilean Central Bank on Thursday announced that it will intervene in the currency market by selling up to $20 billion in foreign currency instruments to try and halt the decline of the peso, which earlier in the day plummeted to a new historic low of 828.36 per US dollar due to the serious ongoing social crisis in the South American country.

"Aside from the level reached by the exchange rate, which to a great degree reflects greater uncertainty, the rapidity and continuance of (currency) movements in the same direction have created (exchange) volatility that is deemed to be excessive," said the bank.

Thursday was the second consecutive day on which the Chilean peso hit a new low against the dollar. Chile's currency has weakened 13 percent against the dollar over the past month.

The intervention will come via the sale of up to $10 billion in US dollars on the spot foreign exchange market and up to a further $10 billion of "exchange hedging instruments" between December 2, 2019, and May 29, 2020.

The bank said that "the monetary effects of this measure will be sterilized, such that providing liquidity in pesos will be coherent with the monetary policy's rate."

"The sterilization will be implemented via the peso liquidity program announced on Nov. 14, ... lasting until May 29, 2020. Meanwhile, the dollar liquidity program will end on the same date," the bank said.

Two weeks ago, the Central Bank announced a program to inject some $4 billion into the economy through short-term currency exchange swaps and repo programs, a measure that many analysts called "too weak" a move and one that would not halt the peso's precipitous decline.

Before the start of the recent social crisis, the lowest value ever attained by the Chilean currency came in October 2002, when it was quoted at 761 pesos to the dollar.

"The Central Bank Advisory Board reiterates that it will continue using all the tools at its disposal to achieve the objectives set for it by law, in particular to maintain the normal functioning of internal and external payments, and for inflation to remain at the goal of 3 percent for a two-year political horizon," the bank added.

The massive anti-government street protests amid the social crisis, which has resulted in at least 23 deaths and thousands of people injured, have been under way for the past six weeks with no signs of any resolution in the short term.

In addition to the cratering of the peso, the protests have had a serious impact on trade and tourism to the point where the Central Bank lowered its domestic growth forecast for 2019 from 2.5 percent to 1.9 percent.

The Chilean government estimates that up to 300,000 jobs could be lost amid the turmoil by the end of this year, a situation that would hike the unemployment rate from 7 percent to 10 percent.

Meanwhile, the currencies of Colombia and Brazil also hit historic lows against the dollar this week due to political instability, pending reforms, popular demands for greater social equity and growing uncertainty over the US-China trade war.

Histórico de noticias
Raptors down Grizzlies, Thunder over Wizards, Spurs jump Pelicans in NBA action

Lake Buena Vista, Florida, Aug 9 (efe-epa).- Basket-scoring power forward Pascal Siakam, from Cameroon, and Congolese-Spaniard Serge Ibaka's strength in the...

US surpasses 5 mn Covid-19 cases, with 19.4 mn worldwide

Washington/Geneva, Aug 9 (efe-epa).- The United States, the country with the largest number of coronavirus cases and the world's highest death toll from...

Ex-Colombian President Uribe tests positive for Covid-19

Bogota, Aug 5 (efe-epa).- Former Colombian President Alvaro Uribe, who governed from 2002-2010, reportedly tested positive for Covid-19 just hours after the...

Samsung updates Note, Fold in sales freefall due to pandemic

San Francisco, Aug 5 (efe-epa).- South Korean multinational Samsung on Wednesday unveiled updated models of its high-end mobile phones Note and the foldable...

US, China digging in on Internet regarding TikTok

By Jairo Mejia/Javier Garcia

Key indigenous leader in Brazil's Amazon dies from Covid-19

Brasilia, Aug 5 (efe-epa).- Chief Aritana Yawalapiti, a well-known indigenous leader in Brazil's Amazon region, died Wednesday at age 69 from Covid-19, the...

From plot vs. China to Colombian virus, Venezuela's COVID tales abound

By Gonzalo Dominguez Loeda

Colombian high court orders house arrest for ex-President Uribe

Bogota, Aug 4 (efe-epa).- Colombia's Supreme Court on Tuesday ordered house arrest for former President and Sen. Alvaro Uribe amid judicial proceedings...

Hurricane Isaias lashes US east coast, killing at least 1

Washington, Aug 4 (efe-epa).- Tropical Storm Isaias, which made landfall as a Category 1 hurricane Monday night in North Carolina, is continuing its...

With virtual hugs and vigils, El Paso remembers victims of Walmart massacre

El Paso, Texas, Aug 3 (efe-epa).- National leaders and organizations on Monday once again remembered the 23 people killed in the mass shooting a year ago at...

Trump gives ultimatum to TikTok: Agree to be sold to US firm or be banned

Washington, Aug 3 (efe-epa).- President Donald Trump on Monday gave popular Chinese video-sharing app TikTok until Sept. 15 to allow itself to be purchased...

The explosive secret underlying Galapagos Islands' volcanoes

By Kevin Hidalgo

US in "new phase" of virus pandemic with infections in urban, rural areas

Washington, Aug 2 (efe-epa).- The United States is facing a "new phase" in the coronavirus pandemic, which is accelerating its spread in both urban and...

Dragon Endeavour space capsule returns 2 astronauts to Earth from ISS

Miami, Aug 2 (efe-epa).- SpaceX's Dragon Endeavour space capsule, carrying two NASA astronauts - Robert Behnken and Douglas Hurley - made a controlled...

Mnuchin: Trump could force sale or block TikTok in US

Washington, Aug 2 (efe-epa).- Treasury Secretary Steven Mnuchin said Sunday that President Donald Trump could force the sale of - or block - popular Chinese...

Isaias slows as it approaches Florida's Atlantic coast

Miami, Aug 2 (efe-epa).- Tropical Storm Isaias slowed as it approached Florida's Atlantic coast, where authorities are not ruling out that it could make...

Hollywood pays tribute to Olivia de Havilland

By Javier Romualdo

Tropical Storm Hanna causes flooding in NE Mexico

Mexico City, Jul 26 (efe-epa).- Tropical Storm Hanna was downgraded Sunday afternoon to a tropical depression, although it is still causing flooding in...

Night of violent protests, riots in Portland, Seattle

By Alfonso Fernandez

Beloved TV talk and game show host Regis Philbin dies

New York, Jul 25 (efe-epa).- Iconic and widely popular US television talk and game show host Regis Philbin has died of natural causes, his family told...

Hanna touches land in Texas, Gonzalo drops in strength to tropical depression

Miami, Jul 25 (efe-epa).- Hanna, the first hurricane of the Atlantic hurricane season, strengthened on Saturday and made landfall on Padre Island, along the...

Ecuador seeks regional support over threat of foreign fishing fleets

Quito, 25 Jul (efe-epa).- Ecuadorian President Lenin Moreno reported Saturday that he has requested meetings with some Pacific coastal nations to seek a...

Florida surpasses New York with more than 414K COVID-19 cases

Miami, Jul 25 (efe-epa).- Florida is the US state with the second highest number of confirmed coronavirus cases, after California, having surpassed New York...

Trump nixes in-person Florida GOP conclave as US virus cases pass 4 mn

Washington, Jul 23 (efe-epa).- President Donald Trump on Thursday cancelled the in-person Republican National Convention scheduled for Aug. 25-27 in...