Central Bank continues intervention, buys another USD $50 million

SANTIAGO.- The Central Bank of Chile purchased USD $50 million during a competitive auction as part of a reserve acquisition program planning to buy a total of USD $8 billion by the end of the year, causing national currency prices to drop.

The Central Bank made the purchase at an average price of $483.57 CLP per dollar, with a maximum of $483.65 and a minimum of $483.50 per dollar.  Offers for USD $132 million were received at the auction.

The financial entity decided to intervene in the exchange market in order to strengthen Chile’s international liquidity amid the current credit crisis in the United States, which had caused the peso to appreciate to levels similar to those observed more than a decade ago.