Chilean crisis hits the Santiago stock exchange and the peso
The Santiago Stock Exchange reached 4.61% and the Chilean peso to 2.06% against the dollar, mainly impacting Chilean trade
After the wave of protests of this weekend in Chile a new problem is added on economic field: the alarming figures that threw the Santiago Stock Exchange and the Chilean peso during the closing of the day to calculate the Selective Stock Price Indices (IPSA) earlier than usual.
According to the IPSA, the value of the Exchange is located at 4,953.20 points also complicating directly the value of the peso with respect to the dollar, suffering a fall of 2.06% to close at 727 units per dollar.
These actions that mean an unfriendly scenario for the Chilean economy have affected the commerce giants, especially the department stores, and energy companies who recorded the main falls in the stock market last week.
The consultant Capital Economics considered however “there are reasons to believe that the protests that broke out in Chile in recent days will have a relatively low impact on the economy and financial markets.”
Capital Economics stressed that Chile has strong institutions as well as the “space” to be able to make concessions to the protesters’ demands. The fiscal deficit is low (2.0% of GDP) and the ratio between debt and GDP is 25%, the consultant said.
K.Villarroel
Source: bancaynegocios
