Skip to main content

Chilean Government Deposited $1.05 Billion in Banks on Interest Rates

By Nathan Gill and Sebastian Boyd
     Oct. 6 (Bloomberg) -- Chile's Finance Ministry deposited $1.05 billion in local banks last week, Minister Andres Velasco told reporters today.
     The ministry was taking advantage of interest rates offered locally, Velasco said. Chilean banks raised interest rates on term deposits as they sought to overcome a shortage of liquidity in dollars.
     Latin American central banks have pumped liquidity into interbank markets as the U.S. credit freeze spread and the counterparties that usually provide foreign currency financing failed, were bought or cut off funding. The central bank canceled daily purchases of $50 million of dollars and instead plans to offer $2 billion of dollar liquidity in four weekly auctions.
     ``The Treasury keeps the funds deposited in banks, not underneath the mattress,'' Velasco said. ``Last week, we saw that rates in Chile were somewhat higher than abroad. Taking advantage of the fact that some deposits abroad came due, we made deposits, as we do routinely, in some of the principal banks in the country.''
     The short-term dollar lending rate in Chile more than doubled to 9.60 percent today from 4.64 percent a week ago, according to data compiled by Bloomberg. Interest paid on 90-day peso deposits rose to 1.18 percent on Oct. 3 from 0.79 percent on Sept. 29, according to data compiled by Bloomberg.

     La Tercera reported the Finance Ministry's actions on Oct. 4, citing unidentified banking industry officials.


Popular posts from this blog

Moving to the Suburbs: Reducciones in Recent Latin American Historiography

In 1503, the Spanish monarchy issued its first decree for the resettlement of indigenous groups in the Caribbean so that they would “live together” and “not remain or wander separated from each other in the backcountry.”[1]

As the European conquest spread to North, Central, and South America, these new settlements – known as reducciones and congregaciones in Spanish and descimentos in Portuguese – became sites of forced labor, evangelism, experimental agricultural, and refuge. Through a series of imperial policies decreed over the next decades and centuries of colonial rule, Spanish and Portuguese officials attempted to reshape the New World, including its human and natural landscapes. How colonial historians explain this process and indigenous peoples’ reactions to it is the focus of this essay.

In a review of the recent historiography of reducciones, several trends emerge that signal a shift in our understanding of the practice. As this paper will show, one common element is that …

77-Year-Old Wall Street Favorite to Face Fujimori in Peru Runoff

By Nathan Gill and John Quigley April 12, 2016 (Bloomberg) -- The victory by Pedro Pablo Kuczynski, a former finance minister, for second place in Sunday’s Peruvian president elections sets up a showdown between two business-friendly candidates, part of a regional backlash against left-wing politicians.
Kuczynski, a 77-year-old Oxford-trained political economist who’s spent more than 50 years championing debt control and free trade, won 21 percent of vote with 96 percent of the ballots counted, according to the electoral office. He will face Keiko Fujimori, who won 39.8 percent, in a second-round vote on June 5.
Click here to read the full story on Bloomberg News.

Greetings From Gringolandia

Bloomberg Businessweek, March 28 — April 3, 2016
Susan Lamy and her husband, Jean Pierre, owned a successful interior design business in Westport, Conn., but they still worried about how they would make ends meet in retirement. “Just paying for the basic necessities was killing us, and we could see that there was no way that we would ever be able to stop working,” says Lamy. 
The search for an affordable retirement spot led the couple to Cuenca, a Unesco World Heritage site in Ecuador’s southern Andes. They settled there in 2013 and now live in a spacious apartment with a terrace overlooking the Yanuncay River. Lamy says she and her husband enjoy a high standard of living in Cuenca for around $2,500 a month, paid for by their Social Security checks: “This seemed to be the best possibility for having a really terrific life on a fixed income.” 
The combination of a subtropical climate, well-preserved colonial architecture, and low cost of living has made Cuenca a magnet for North Ameri…