Chilean central bank intervenes to stop dollar hike

The US dollar eased slightly against the Chilean peso after the central bank's announcement to temporarily supply 25 billion dollars to stop the exchange rate hike.The temporary measure will extend to September 30, 2022.

The country's Finance Secretary said the volatility of local financial markets are adding to the main factors affecting the exchange rate. This is what the central bank argued to justify its decision.

The Chilean peso had been losing value consistently, and lost 50 pesos against the dollar to sit at 1,000 to 1 dollar.It was the largest drop since 1999.