RIO DE JANEIRO, BRAZIL - Chile’s peso tumbled on Wednesday, January 13th, starting the year in a volatile fashion as many had forecast. The currency dropped 2.1% to 741.66 against the dollar, bringing its decline this year to 4%.
That makes it the worst performing of 24 emerging-market currencies tracked by Bloomberg. The reason is simple. Chile’s central bank announced on Wednesday that it plans to boost its foreign reserves, buying US$ 40 million a day for more than a year until its holdings reach 18% of gross domestic product.
That should ultimately provide some stability . . .