In the course of this week, on 13 and 14 November, the Council of the Central Bank of Chile (BCCh, for its acronym in Spanish) announced measures to manage the liquidity of the financial system. This comes after the dollar climbed to around $800 Chilean pesos in the last few days. The measures will apply from November 14 and 15 until January 9, 2020.

The BCCh aims to use these measures to mitigate the likelihood of tensions affecting the financial markets in the wake of recent social events and the lower liquidity levels usually occurring in the last months of the year.

Among the measures announced on November 13, it is worth mentioning that the BCCh will offer a dollar injection program which contemplates an amount of up to US$ 4 billion, through bids to purchase foreign exchange swaps at 30 and 90 days, and a minimum Libor plus 200 bp premium for nomination.

At the same time, on November 14, the Bank launched another series of measures, among which is the suspension of the issue of Discounting Promissory Notes by the Central Bank (PDBC) for the remaining reserve period that ends next December 8.