LATAM CURRENCIES: Ready or not
Latin American policymakers tell LatinFinance they are bracing for further currency falls
Across Latin America, policymakers are preparing for an end
to the extraordinary monetary stimulus in the US, even as
markets bet that the Federal Reserve will delay the unwinding
of its bond-buying program into next year. Some, including the
central banks of Brazil, Peru and Chile, had stepped up
interventions in their currency markets in recent years as
stimulus measures by developed world central banks triggered
rampant capital flows to emerging markets, putting upward
pressure on currencies (see chart). But today, that dynamic is
reversing, with authorities in some cases acting to prop up
their weakening currencies,...
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