Events: 12 billion U.S. dollars to purchase foreign exchange started in the history of Chile's largest f
| Event Details:
January 4, 2011, the peso continued to appreciate against the dollar, from January 3 to 468.01 rose to 466.05, so as to achieve since May 2008 historical high.
At this time, Chile's central bank has himself, announced that it will launch 12 billion U.S. dollars of foreign exchange purchase program, the purchase period of January 5 this year by the end of December.
Chile's central bank said the peso appreciation of this intervention will reduce the pressure to the Chilean economy and let the peso and the foreign exchange reserves reached a level corresponding to the Chilean economy. "This is the largest in the history of China's foreign exchange intervention." Finance Minister Felipe Larrain of Chile in Santiago, said publicly. Chilean peso rose to nearly three-year high at present, the Chilean domestic exporters suffered heavy losses.
Appreciation of 17% six months
Chile's central bank made a decision to intervene in the exchange rate, the specific plan is, from January 5, 2011 until February 9, Chile central bank President Jose De Gregorio will lead the Chilean Central Bank purchased on a day to bid $ 50,000,000. After February 9, Chile central bank will be based on performance and market conditions to develop new purchase program, is expected to continue to buy the end of December 2011 until the liquidity position it took about 17% of Chilean GDP.
Chile central bank data show that after 1 January 2010, the Chilean peso against the U.S. dollar price had ups and downs, once on February 5 as low as 546.18. Since undergone three down, three up, until June 8 that year reached the highest point of 545.31, after 6 months higher.
2010 January 4, the Chilean peso against the U.S. dollar within a year for the 507.10,1 appreciation of 8.8%. By June 2 if the exchange rate of 545.31, the Chilean peso against the U.S. dollar appreciated 6 months more than 17%, becoming the fastest growing appreciation of Latin American currencies.
Chinese Academy of Social Sciences, Institute of Latin American research assistant Yong told reporters, 9 months 2010, the Latin American countries ordered from high to low appreciation of the currency were Brazil (13.6%), Colombia (13.2%), Uruguay (13.1%) Chile (9.4%) and Costa Rica (8%).
Last year early in November, Chile central bank announced that it will invest in overseas markets gradually the proportion of pension ceiling from 60% to 80%, to ease the sharp rise of the peso. This decision was announced, the peso had to stop rising within a short time, but soon it states repeated continuously record high.
Central Bank of Chile Chile's external risk that high. Chile's central bank on Jan. 3 in the bulletin said, the international economic situation facing unusual circumstances, such as the slow recovery of the developed countries, such as the U.S. currency depreciation. Major challenges include the debt crisis in Europe, many emerging economies are facing inflationary pressures, increasing reserves to better respond to the significant deterioration in the external environment. Chile Central Bank President Jose De Gregorio in December 2010 warned, the peso's real exchange rate close to the limit, going from economic fundamentals.
The exchange rate dilemma
September 1999, Chile to free floating exchange rate system, but the central bank remains exceptional cases, the power to intervene in the foreign exchange market. According to Chile's current "Basic Law, the Central Bank," Central Bank of Chile to develop and implement foreign policy. If the central bank that the exchange rate deviation from its equilibrium value, it will adversely affect the economy, the central bank can intervene on the exchange rate.
"The main reason is that the developed countries and emerging economies, growth performance is inconsistent. 2010, sluggish growth in developed countries in Europe and America, Latin America, strong economic recovery. United States and other developed economies to maintain low interest rates and the introduction of secondary quantitative easing policy, will inevitably lead to a large number of short-term capital inflows emerging economies, to enable these countries to appreciate significantly. Meanwhile, the weak dollar and other factors pushing up commodity prices, emerging economies increase the risk of imported inflation. "Yong said.
Chile is a major international supplier of copper. Exports in Chile, Chile's copper exports accounted for more than 50% of exports, the global copper prices rose sharply in 2010. On the one hand led to Chile's economic recovery, it also increased the as_set_ bubble.
Yong analysis, now includes some Latin American countries including Chile, will face against the currency "passive appreciation" and the anti-inflationary dilemma. If the way to raise interest rates to control inflation, which would widen the spread of domestic and developed countries, but accelerated the influx of hot money, as_set_ bubbles.
Yong believes that the market will soon make a response to ease the appreciation pressure on the peso. However, growth in developed and emerging economies, the pace of the situation of different duration longer than expected, which may also increase the exchange rate pressure. Therefore, the intervention of the long-term effects remain uncertain. In addition, Zhang believes that the increase to off_set_ the impact of foreign exchange reserves, Central Bank of Chile need to be off_set_ by open market operations, this will bring some of the write-off costs.
(Editor: Jiang Jiong) |
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