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The dollar remains flat in Chile while other Latin American currencies depreciate.

Gabriel Micillo•Wednesday, February 28, 2024•1 min read

Unlike other currencies like those of Brazil and Mexico, the Chilean peso shows strength on a challenging day for emerging market currencies.

After a long day in the Latin American market, the US dollar is trading at an average of 981 Chilean pesos at the start, representing a 0% change compared to the previous day’s rate, when it was also at 981 pesos.

Looking at the last seven days, the US dollar has seen a 0.14% increase. Consequently, on a year-on-year basis, it still shows a rise of 22.82%.

Meanwhile, the Brazilian Real and the Mexican peso depreciated 0.3% against the US dollar.

In comparison with previous days, there have been notable fluctuations, but relative to other Latin American currencies, the US dollar has shown strength. The volatility figure is lower than the accumulated volatility of the past year, indicating that in this recent phase, it is experiencing fewer fluctuations than the overall trend suggests.

After a year of economic stagnation, Chile could experience a rebound in 2024 and 2025, according to estimates from the Organisation for Economic Co-operation and Development (OECD).

The OECD predicts an improved outlook due to the rise in real wages resulting from decreased inflation and falling interest rates, allowing Chileans to increase their consumption.

It indicates that production will increase by 1.8% in 2024 and by 2.5% in 2025. The outlook is positive as business confidence has improved, along with demand for minerals, which will sustain exports. It is estimated that inflation will reach the central bank’s target in the second half of 2024, after which it will decline at a slower pace.

The recovery in the labor market has been slower, and inflation has also affected Chile, fueled by strong demand pressures, increases in commodity prices, supply disruptions, and peso depreciation, ultimately leading to the highest public debt in three decades (37% of GDP).

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ABOUT THE AUTHOR See More
micillogabriel@gmail.com
Gabriel Micillo
Gabriel is a certified public accountant graduated from UNNE (National University of the Northeast, Argentina) and a software developer, currently pursuing a Master's degree in Finance and Economics. With nearly 8 years of experience working for accounting firms and brokerage firms. Concurrently, he has produced economic and financial reports on the current state of regional economies for the clients of the establishments where he has worked. Additionally, he assisted colleagues like Ignacio Teson in the drafting and editing of articles on similar topics in English language.
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