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Chile Central Bank to Inject $4B to Halt Peso Slide
Chile's central bank on Wednesday announced a $4 billion injection to stop a currency slide that saw the peso reach historic lows on two successive days.
The peso fell to 795 to the dollar at the close Wednesday after a previous record low of 783 on Tuesday.
The bank said it had taken the measure to "mitigate eventual tensions" in the financial markets.
It expressed fear that the combination of social unrest and a lack of cash flow at the end of the year would see the currency fall even further.
The foreign currency injection will be done in the form of 30- and 90-day tenders for futures between November 14 and January 9.
The peso's previous record low was 761 to the dollar in October 2002.
The peso has been hit hard by nearly four weeks of protests against the economic policies of right-wing President Sebastian Pinera.
Pinera has announced a raft of measures to pacify demonstrators angry at social and economic inequality, but many are demanding the president stand down.
The fall in the currency has raised fears that inflation will increase and GDP growth will slow.
November 14, 2019 at 07:58AM
