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As a form intervention, the government of Chile reduces one of its key interest rates

Finance

As a form intervention, the government of Chile reduces one of its key interest rates. The values of several other Latin American currencies are expected to react substantially against the Chilean peso in response to the intervention. Discuss completely the effects of the intervention to the currencies and possible counter measures of other Latin American countries. Also discuss its effects to a US firm exporting to Latin American countries where transactions are denominated in their respective Latin American currencies

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