01621cas a2200241 a 4500 AALejournalIMF013762 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484393611 1018-5941 BD-DhAAL BD-DhAAL Wu, Yi. What Explains Movements in the Peso/Dollar Exchange Rate? / Yi Wu. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the factors affecting the weekly peso/dollar exchange rate movements between 1999 and 2013 using an error correction model. The model fits the historical data well. While copper price is the most important determinant of the peso exchange rate over the long run, other factors including interest rate differential, global financial distress, local pension funds' derivative position, as well as the Federal Reserve's quantitative easing also affect the peso in the short run. The Central Bank of Chile's foreign exchange interventions in 2008 and 2011 had a small impact on the peso. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2013/171 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/171/001.2013.issue-171-en.xml IMF e-Library