Since November 2019, the Central Bank of Chile (CBC) has implemented a preemptive program which has the objective of facilitating liquidity within the local financial system both in domestic and foreign currency. Concurrently, the CBC implemented an FX intervention program to diminish excess volatility of the exchange rate. Additionally during this period, the CBC has carried out measures which have the objective of increasing the effectiveness operations announced in domestic and foreign currency, and to facilitate the liquidity management of the local financial system.

  • On November 13, 2019, the CBC announced a REPO and FX Swap program to increase the liquidity of the local markets in domestic and foreign currency.
     

  • On November 14, 2019, the Central Bank allowed the use of bank bonds as collaterals in all liquidity operations denominated in Chilean pesos.
     

  • On that same day, a debt buyback program was implemented to increase the liquidity of  non-banking agents, such as mutual funds, insurance companies, pension funds, as well as the liquidity of the banks. The CBC also temporally suspended the issuance of short-term securities (PDBC), as a strategy to support the liquidity of the financial system.
     

  • From November 28, 2019 to May 29, 2020, the CBC implemented an FX intervention program aimed to sell USD for up to US$ 20 billion; according to the following scheme:

    - Sale of USD on the spot market for maximum total of US$10 billion, of which US$ 2.5 billion have been sold.

    - Sale of USD on the forward market for hedging purposes for up to US$10 billion
     

  • On January 3, 2020, the CBC announced that it would roll-over only the outstanding FX forward stock, which rose to US$ 4.5 billion
     

  • From March 16, 2020, and initially until January 9, 2021, the CBC extended the REPO and FX Swap programs due to worsening financial conditions in international markets. This resulted in the following:

    - The inclusion of new maturities in REPO operations: 7 and 180 day maturities were added to the existing 30 and 90 day maturities.

    - The inclusion of new maturities in FX Swap operations: 90 and 180 day maturities were added to the existing 30 day maturities.

    - In both cases, the operations with 180 day maturities were available until the first week of July, 2020.
     

  • On March 18, 2020, a temporary change to the reserve requirement regulations for Banks and other credit supplying companies was introduced, extending from March 9, 2020 until September 8, 2020. This has allowed these institutions to complete their reserves with foreign currency deposits, USD, euros and Japanese yen, and local currency.
     

  • Additionally, the amount of dollars offered daily by the FX Swap program was increased to US$ 400 million in the 30 day bucket, for the 19th and 20th of March, 2020.

 

 

Spot Dollar



 

El BCCh aumentó el impulso monetario, reduciendo la TPM a su mínimo técnico, y adoptando medidas de liquidez adicionales a las que normalmente están disponibles

  • El 16 de marzo de 2020, el Banco redujo la TPM en 75 puntos base hasta 1%, junto con implementar un conjunto de medidas adicionales:

       -  Apertura a los bancos de una facilidad de financiamiento condicional al incremento de colocaciones (FCIC) y la activación de la Línea de Crédito de Liquidez bajo condiciones especiales, con incentivos a entrega de préstamos a personas y empresas (foco en el segmento PyME).

       -  Inclusión de bonos corporativos dentro de los colaterales elegibles para todas las operaciones de liquidez en pesos vigentes.

        - Activación de un programa de compra de bonos bancarios a los participantes del sistema SOMA (bancos y otras instituciones financieras) por un monto equivalente en UF de 4.000 millones de dólares y en plazos de madurez hasta 5 años, el que posteriormente fue ampliado en una suma equivalente.

        - Extensión del programa de venta de divisas implementado en noviembre de 2019 (ya descrito), hasta el 9 de enero de 2021. 

  • El 31 de marzo de 2020, el BC redujo la TPM en 50 puntos base adicionales la TPM hasta el mínimo histórico de 0,5%. 
     
  • En la misma fecha amplió el programa vigente de compra de bonos bancarios en US$ 4.000 millones más, hasta US$ 8.000 millones, y eliminó la restricción de plazo de los instrumentos elegibles. Con ello, el saldo de compra remanente de dicho programa pasó a ser de hasta US$ 5.500 millones, dado que se habían comprado US$ 3.500 previamente hasta esa fecha.

 

Venta dólares

 

 



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