The internationalization of the Chilean peso can enhance financial stability, by alleviating liquidity concerns during stress episodes and reducing counterparty risks, among other effects. All of these changes must be accompanied with more robust and developed financial infrastructures. Also, the wider cross-border usage of the Chilean peso improves our position as a financial center. Regarding concrete measures towards accomplishing these goals, the CBC is reviewing its FX regulation, in order to modernize and simplify it. In addition, a larger and more developed FX market should benefit from having access to more robust financial market infrastructures. Page 12 of 20  Central Bank of Chile September 2019  In order to do so, the CBC issued regulation and is implementing a Trade Repository for OTC derivatives, relying on its current faculties and in coordination with the Financial Market Commission. Additionally, the CBC is working on an initiative that will allow its Real Time Gross Settlement (RTGS) payment system to settle US dollars large-value interbank transactions. These measures add to the future inclusion of the Chilean Peso as the first CLS-eligible currency in South America. This is a priority for the CBC, therefore we are working closely with the CLS Bank to materialize this in the next three years.
The different developments that are underway should contribute to financial stability and increase the crossborder use of the CLP, as well as the participation of non-residents in the domestic market. Therefore, authorities and market participants should be prepared to be part of a bigger and more internationally integrated FX market. Let me conclude by remarking that this journey for the Chilean financial system, through a deep financial crisis, has led to just new bank regulation but also to valuable lessons learnt for the future. A deeper and properly regulated financial system contributes to financial stability, inclusion and increased welfare. Page 19 of 20  Central Bank of Chile September 2019  Preventing stress episodes is a task that requires constant monitoring and early detection of potential sources of vulnerabilities and risk. The enactment of a new Banking General Act and internationalization of the Chilean peso, among other measures, open up a new phase for modern regulation. Even though significant progress has been made in this regard, there are still challenges ahead that must be faced to further strengthen our financial system. ***  Page 20 of 20