Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Chile sees peso joining heavyweight CLS FX system in 2021 - central bank chief

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/11/2019 | 02:11pm EDT
FILE PHOTO: Chile's Central Bank President Mario Marcel arrives at the Congress in Valparaiso

LONDON (Reuters) - Chile's central bank expects the country's peso currency to be added to the heavyweight global CLS foreign exchange settlement system by 2021, its governor Mario Marcel said on Wednesday.

CLS is owned by dozens of the world's largest commercial banks and has become a crucial piece of FX market infrastructure since its launch in 2002.

Last month $1.75 trillion was settled daily on its platform on average, about a third of the $5.1 trillion traded every day on the global forex market.

The platform currently has 18 currencies, but only the Mexican peso from Latin America. Chile hopes joining it would bolster the Chilean peso's international standing and Santiago's hopes of becoming a regional finance centre.

"We are prepared to dedicate all the time and resources to it," Marcel told Reuters in an interview in London, pointing to 2021 as the expected joining date.

CLS is seen as an advantage because it allows for real time settlement of international trades, which helps eliminate 'counter party risk'. It also reduces the need to hold so much liquidity because transactions are settled on a net basis.

The last country to join was Hungary, in a process that took 2-1/2 years. To become a CLS member, local banks need to be in agreement and the central bank has to meet some key operational requirements, such as its own systems being live at the right times.

That is tricky for Chile as one of the key times for international FX settlement comes in the middle of its night, meaning central bank staff may have to set up new night shifts.

"It is a very carefully crafted process but we already had a large mission from CLS in June. The feeling was with Chilean banks, with the financial institutions, that the outcome was extremely positive."

"It is already seven to eight months since we started, we are making good progress, but we know this is not something you rush," Marcel added.

(Reporting by Marc Jones, Editing by Rosalba O'Brien)

By Marc Jones

Stocks mentioned in the article
ChangeLast1st jan.
CLS HOLDINGS PLC -0.82% 241 Delayed Quote.14.22%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
01:20aTrump says he does not want war after attack on Saudi oil facilities
RE
01:19aTrump says he does not want war after attack on Saudi oil facilities
RE
01:16aNEWS HIGHLIGHTS : Top Company News of the Day
DJ
01:16aNEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
01:15aINTERNATIONAL PANEL TO CRITICIZE U.S. FAA'S BOEING 737 MAX APPROVAL PROCESS : Wsj
RE
01:12aTrade talks seen as unlikely to mend U.S.-China divide
RE
01:07aMEKONG TOURISM COORDINATING OFFICE : UNWTO praises advances in Vietnam's tourism
PU
01:06aDivided Fed set to cut interest rates this week, but then what?
RE
12:51aOil falls but prices still elevated after attacks on Saudi facilities
RE
12:43aUAE minister says international community should stand by Saudi Arabia after attacks
RE
Latest news "Economy & Forex"