The Chilean peso recovered ground against the dollar amid the advance of copper that was recorded on Wednesday and after the report from the Federal Reserve meeting. The officials of the financial entity postponed the cut in interest rates until the end of the year and anticipated that 2025 will be a “very busy” period in these aspects.
After the opening of markets the American dollar is quoted at the start of sessions 914.98 Chilean pesos on averagewhich implied a decrease of 0.23% compared to the price of the previous day, when it ended with 917.09 pesos.
If we consider the data from the last week, the American dollar marks a decrease in 0.53%%; but in year-on-year terms it still maintains an increase in 12.45%.
In relation to previous days, it has had two consecutive sessions of descent. The volatility of the last seven days presents a lower behavior than the volatility reflected in the data of the last year, so that in this last phase it is trending less variations than normal.
After an economically stagnant yearChile could experience a rebound by 2024 and 2025, according to forecasts from the Organization for Economic Cooperation and Development (OECD).
He anticipates that the outlook will improve due to the rise in real wages due to the decrease in inflation and the fall in interest rates, allowing Chileans to improve their consumption.
It indicates that production will increase by 1.8% and 2.5% in 2025. The outlook is positive since business confidence has improved, as well as the demand for minerals, which will sustain exports. He estimates that the inflation It will reach the central bank’s goal in the second half of 2024, from then on it will decrease at a slower pace.
He Chilean peso It has been the legal currency of Chile since 1975, it resumes the use of the peso sign ($) and is regulated by the Central Bank of Chile, which controls the amount of money in circulation.
The Chilean currency was established in 1817 after the country’s independence, but it was not until 1851 that the decimal system was established in the Chilean peso, which is now made up of 100 centavos. As time has passed, the currency has changed, but Currently it is counted in whole pesos.
To date you can find coins of 5, 10, 50, 100 and 500 pesos, the latter was the first bimetallic coin produced in the country. In 2009, an attempt was made to create 20 and 200 peso coins, but the project was rejected by Congress. Meanwhile, in 2017 it was approved to stop issuing 1 and 5 peso coins.
Likewise, in October 2018 the Chilean Central Bank announced that it would begin the withdrawal from circulation of 100 peso coinsmanufactured between 1981 and 2000, in order to reduce their coexistence with current coins, although they are still valid.
Regarding economic matters, Chile had a strong fiscal response in 2021, which allowed it to grow up to 11.7%, being one of the fastest recoveries in the world after the coronavirus pandemic. This situation is explained by consumption driven by the withdrawal of pension funds and direct fiscal support.
Despite this, recovery in the labor market has been slower and inflation has also affected Chile fueled by strong pressures on demand, increases in raw material prices, interruptions in supplies and the depreciation of the peso, which ultimately led to having the highest public debt in three decades ( 37%).
