Central Bank purchases USD $50 million at an average price of $459.56

SANTIAGO. -  Chile’s Central Bank bought USD $50 million on the fourth day of competitive bidding during a reserve acquisition program that plans to purchase a total USD $8 billion by the end of the year as part of an intervention plan that has lowered the strength of the peso.

The Central Bank bought the currency at an average price of $459.56 pesos per dollar, with a maximum value of $459.60 and a minimum value of $459.50 per US dollar.  Offers for USD $ 129 million were received at Thursday’s auction.

The financial entity made the decision to intervene in the exchange market in order to improve Chile’s international liquidity amid the sub prime credit crisis in the United States.  Appreciation had brought the value of the peso to levels similar to those seen more than a decade ago.

Exporters have applauded the intervention of the Central Bank, which has also been supported by the Executive Branch of the government.