Chile central bank to offer up to $4bn to facilitate liquidity

Central Bank President Mario Marcel said the country's fiscal position remained 'solid' despite the peso's volatility.

    People walk past currency exchange offices in Santiago, Chile November 12, 2019 [Fabian Cambero/Reuters]
    People walk past currency exchange offices in Santiago, Chile November 12, 2019 [Fabian Cambero/Reuters]

    Chile's central bank said on Wednesday it would implement measures to facilitate dollar and peso liquidity in the financial system after weeks of social unrest.

    The bank said in a statement it will inject up to four billion dollars through 30- and 90-day swap tenders and would also implement a REPO, or repurchase agreement programme.

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    The programmes will run from November 14 through January 9, subject to change depending on market conditions.

    On Tuesday, Central Bank President Mario Marcel said the country's fiscal position remained "solid" despite the peso's volatility.

    The peso currency slid four percent on Wednesday, at one point reaching a low of 800 pesos to the dollar, after President Sebastian Pinera announced his government would look at rewriting the country's constitution written under military dictator Augusto Pinochet.

    SOURCE: Reuters news agency