Exchange Rate in Chile
Chile - Exchange Rate (average of period)
Peso weakens in March as Covid-19 prompts emerging market sell-off
The Chilean peso traded at an all-time low over the past month, as the escalation of COVID-19 epidemic rattled commodity-linked currencies. On 13 March, the peso traded at CLP 839 per USD, a 5.4% depreciation from the same day last month. On a year-on-year terms, the CLP was down 20.3% and 10.4% on a year-to-date basis.
While January’s steep fall in copper prices weighed on the peso throughout February, the currency continued its downward spiral in March as the spread of coronavirus and sinking oil prices prompted capital outflows from emerging markets. Most Latin American currencies were affected by the aggressive sell-off, including Brazil, Colombia, Mexico and Uruguay.
In turn, at its special meeting on 16 March, the Central Bank announced it will extend its currency-market intervention program until January 2021 in an attempt to insulate financial markets and stabilize the peso from the Covid-19 pandemic. The program was initially devised in November to mitigate the impact of October’s protests on the currency and was slated to last until May 2020.
Looking ahead, the peso is expected to recover as the spread of the virus subsides and on a pick-up in Chinese manufacturing activity. That said, the timing of the recovery depends on how quickly the world quells the pandemic and gets demand back on track. Meanwhile, additional downside risks to the peso’s outlook stem from the uncertainties surrounding April’s constitutional referendum.
Our panel sees the peso ending 2020 at 769 per USD and 2021 at 750 per USD.
Chile - Exchange Rate (aop) Data
|Exchange Rate (vs USD, aop)||654.6||676.5||648.9||642.1||703.3|
5 years of economic forecasts for more than 30 economic indicators.
Chile Exchange Rate (aop) Chart
Source: Thomson Reuters.
|Bond Yield||3.14||-0.44 %||Dec 30|
|Exchange Rate||752.0||0.05 %||Jan 01|
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November 2, 2022
Economic activity dropped 0.4% year on year in September (August: -0.0% yoy).
November 2, 2022
Business confidence fell to 39.0 in October from September's 43.3.
November 1, 2022
Copper prices declined in October to USD 7,651 per metric ton from the prior month’s USD 7,746 per ton.
October 14, 2022
Consumer confidence fell to 88.8 in September from August's 91.8.
October 13, 2022
At its mid-October meeting, the board of the Central Bank of Chile (BCCh) decided to increase the monetary policy rate from 10.75% to 11.25%, taking total tightening this year to 725 basis points.