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Not sure what you mean. . . .
by "its"???? (and it should be "it's" !!!) Anyway, it (the chip) cannot measure its own current, only the current flowing through the (red jacket) wire.
The C1 cap shown is simply a decoupling element used to remove line effects from the power going into the CSA_V1 chip.
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Regards . . . . JimF
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'94 S500 Cpe
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