Chilean peso continues to fall due to internal crisis
The currency of the South American country suffers the onslaught of the current political and social crisis that aggravates its depreciation
Chile is in the midst of a social and political change that has caused protests and reactions found among residents. The economy is reeling and, even worse, the peso – the local currency – continues to lose value.
This Wednesday, the peso showed a strong depreciation for the second consecutive day, reflecting 795.35 units per dollar. “The depreciation of 1.04% of the Chilean peso – quoted at 787.14 on Tuesday – occurred on a day when the domestic currency momentarily exceeded 800 pesos per US currency,” according to the media.
The crisis that has affected Chile for more than a month keeps the national currency at the historical minimum (803 pesos), so the Central Bank made the decision to inject US $ 4,000 million into the market, through tenders to 30 and 90 days
Last week the peso seemed to be traced in the market after the signing of the political agreement to change the current Constitution (Augusto Pinochet, 1973-1990) and that would allow to end the crisis. At that time, the peso showed a positive recovery and traded 777.29 per dollar.
However, the international trade scenario is adverse, due to the trade war between China and the United States, which is affecting different economies and hitting the currencies of emerging economies.
M.Pino
Source: BancayNegocios
