This generates an additional problem for these economies for which, the strength of domestic demand could compensate (that depends on the domestic credit), at least in part, weak external demand. So it is that, faced with the impact of the crisis in Latin American financial markets, inevitably the next question arises: what should central banks in the region do? In the immediate term, related to what you are doing the central banks in the region, these have passed its focus of inflationary problems toward the volatility of the exchange rate seeking to avoid local currencies continue depreciating, although they do not overlook the first. So the central banks of Argentina, Peru, Mexico and Brazil have come to intervene in foreign exchange markets to sustain the quote. Colombia and Chile have eliminated daily purchases of foreign exchange. Colombia announced that it will begin to perform control of volatility auctions to sell a quota of US $180 million and control the fall of its currency.

Here it is worth mentioning the importance having the accumulation of international reserves in Latin American countries, which prevents Exchange runs or any other unwanted effects occur. A question to assess seriously is how it impacts the new situation in the inflationary dynamics of the countries of the region. The blow that the crisis has given the growing trend of commodity prices, has eased the external pressures that on prices received the economies of the region. Last Thursday, central Chile and Peru banks have decided to leave unchanged its reference rate given the impact of the uncertainty in international financial markets and prospects recessionary global economy, about external factors that caused a large part of the household in such countries inflation (mainly, with the rise in the price of energy and agricultural commodity prices). Moreover, the central banks of the region must work to restore the channels of monetary policy transmission to their actions to be effective again.

One of these channels hit by the crisis, is the credit channel. The deterioration in the credit market, depressed by global uncertainty with incidence in the local context, should then be another issue to treat. In this regard, the Central Bank of Colombia, has decided a series of measures to encourage domestic credit, as for example the Elimination of marginal lace, and they are assessing the reduction in the average bank loans lace. The Central Bank of Colombia also eliminated the lace by the entry of foreign currency from abroad. Finally, the lack of integration among Latin American countries can be the factor that explains the coordination of monetary policies between them. Despite this, it would be suitable in this context that Latin American central banks begin to coordinate their actions and agree on goals that are not generated unwanted effects of the policies of some countries over others. While perhaps not you can claim a global coordination between central banks in the region, if it can suggest that those countries with greater linkages, assess the possibility of coordinating monetary policies. When the local macroeconomic context was making easy the task of Latin American Central bankers, the crisis has been transforming into the unwanted guest who provoked that monetary policy makers need to be constantly evaluating its lines of action and thinking about measures that protect the stability of financial markets before the different shocks they received from abroad.