José De Gregorio: Central Bank has not ruled out exchange rate intervention

Nevertheless, the issuing entity's president emphasized that this will only be done in the case that long-term complications are foreseen.

17 de Enero de 2008 | 13:18 | Rodrigo Hirigoyen P.

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SANTIAGO.- Concerning the possible intervention of the Central Bank in the exchange rate, entity president José De Gregorio stressed today the idea of taking action when it is deemed necessary. He asserted, however, that this does not mean that measures will be taken in the short term.

De Gregorio maintained that an intervention would only take place if it seemed like economic conditions would be upset in the long term.

Regarding the current exchange-rate situation, the president of the Central Bank explained that the peso should experience a period of depreciation, which would increase the value of the dollar.

De Gregorio also stated that the Central Bank will not use the value of the dollar as a way of controlling inflation, arguing that in the past, this had brought "very bad experiences".

De Gregorio speculated that the low value of U.S. currency can be attributed in part to an overreaction in the market.