Global Crisis Drives Several Latin American Central Banks into Uncharted Territory

Colombia and Chile adopt modest liquidity injection programs through debt purchases. Brazil is authorized by Congress to do likewise. These programs are an option against the impact of the coronavirus crisis.

RIO DE JANEIRO, BRAZIL - Two letters - QE, short for Quantitative Easing - that saved the United States and Europe from total stagnation in the great financial crisis of a decade ago, are starting to be uttered in recent days in some Latin American capitals.

The advancing economic crisis that is expected to be particularly intense in emerging countries is forcing several of the region's foreign exchange issuers to rehearse a formula unprecedented in these latitudes: the injection of liquidity, through public or private debt purchases to ensure the efficient operation of markets and reduce financing costs for governments and companies . . .

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