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BCI estimates loss due to US tax reform; Argentina central bank holds key rate


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BCI estimates loss due to US tax reform; Argentina central bank holds key rate

* Chile-based Banco de Credito e Inversiones SA, or BCI, said the U.S. tax reform will result in a one-off negative impact of about $51.5 million on the bank's financial statements for 2017 due to a recalculation of deferred tax assets. The bank noted, however, that the reform will benefit its U.S. subsidiaries in the long term.

* Argentina's central bank maintained its monetary policy interest rate at 28.75%, noting that the evolution of core inflation "has been favorable in recent months." The central bank has not yet achieved its inflation target of 12% to 17% for 2017, putting next year's target of 8% to 12% under pressure.


* The Mexican central bank sold $500 million in foreign exchange hedges on Dec. 26 to support the local currency, which recently fell against the U.S. dollar, Reuters reported.

* Guatemala's central bank appointed Felipe Garcia-Salas administrative manager, replacing Orlando Garrido Grajeda, who has retired, Prensa Libre reported.

* Bank credit growth in Mexico slowed to around 10.3% in the first 10 months of 2017 from nearly 15% in full year 2016, El Economista reported, citing data from local banking and securities commission CNBV.

* Mexican telecommunications firm Axtel has secured a 6 billion Mexican pesos loan from HSBC Mexico SA in order to refinance its existing debt, El Financiero reported.


* Brazil's central government registered a primary budget surplus of about 1.35 billion reais in November, Reuters reported. The median forecast in a Reuters poll was for a deficit of 14.6 billion reais.

* Brazil's foreign affairs ministry said the government will declare Gerardo Antonio Delgado Maldonado, Venezuela's top diplomat in Brazil, persona non-grata, Reuters reported. The move comes after Venezuela recently expelled Brazil's diplomatic envoy.

* Brazilian payment processor PagSeguro Digital Ltd. filed for an initial public offering of up to $100 million in the U.S., noting that it plans to have its class A shares listed on the New York Stock Exchange under the symbol "PAGS."

* Brazilian banking industry federation Febraban published new rules on cash withdrawals exceeding 50,000 reais, Diário Comércio Indústria & Serviços reported. The new rules, effective Dec. 27, will require customers to inform their bank of the withdrawal three days in advance and also provide a reason for why they need the cash.

* Brazilian Treasury Secretary Ana Paula Vescovi said the sale of Banco do Brasil SA shares held by sovereign fund FSB will be completed by the end of 2018, earlier than the deadline set for 2019, Valor Econômico reported.


* Peruvian financial regulator SBS has published new market risk rules for financial companies, to be implemented June 1, 2018, Gestión reported. The rules include responsibility for directors and executives to monitor financial risks arising from market price fluctuations, among other things.


* Banco Santander Chile said it has extended its branch hours throughout Chile until 6 p.m. local time. In a statement, the company noted that banks in Chile traditionally close at 2 p.m. This decision comes as Santander Chile "prepares itself for what should be a higher growth period in 2018, especially in retail banking."

* Argentina's government placed 23.20 billion Argentine pesos of 90-day Treasury bills, Clarín reported.

* Argentina posted a trade deficit of about $1.54 billion in November as exports stagnated, Reuters reported, citing national statistics agency INDEC. A survey by the newswire had estimated a trade deficit of $758 million for the month.

Helen Popper contributed to this article.

The Daily Dose has an editorial deadline of 8:00 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription.