Chile’s central bank said on Wednesday it would implement measures to facilitate dollar and peso liquidity in the financial system after weeks of social unrest.
The bank said in a statement it will inject up to $4.0-billion through 30- and 90-day swap tenders and would also implement a REPO, or repurchase agreement, program.
The programs will run from Nov. 14 through Jan. 9, subject to change depending on market conditions.
On Tuesday, Central Bank president Mario Marcel said the country’s fiscal position remained “solid” despite the peso’s volatility.
The peso currency slid 4 per cent on Wednesday, at one point reaching a low of 800 pesos to the dollar, after President Sebastian Pinera announced his government would look at rewriting the country’s constitution written under military dictator Augusto Pinochet.