Chile Forum

Any insight on what's causing the USD-CLP movement?

Don't you read the information posted on this very forum?

GOVERNMENT INTERVENTION ON BOTH SIDES.

If you think that what Central Bank of Chile will not be offset by higher prices in country, you are one of the sheep.

BTW, what did you really study at the Universidad? Nothing about macroeconomics? You seem to ignore the input from some of the most prominent posters here.

Good luck.

No, I was taking into account what had been posted. I recall reading, in this thread, that the Central Bank's buying dollars would only raise the rate to the 440s, and temporarily. I was curious to know if any more recent developments had further bolstered the dollar.

You got me on the macroeconomic. I just completed a BA in Management and a BA in Hispanic Studies, only took an ECON 101 class freshman year.

JAL, the guess of recovery to the 440s was only that: a guess. So, too, any guess of duration of recovery. Presuming to write for others who are perfectly capable of writing for themselves, but with whom I'm in broad agreement, the point wasn't to give readers specific figures or dates so much as to emphasize that governmental interference with market mechanisms yields only transient results.

Very well, thank you for the clarification. I'll take that into account when I am reading such posts in the future.

The dollar leaping from 72 to nearly 74 in that same time frame as the Chile Central Bank action also boosted the exchange rate.

Ironically, the fundamental influence of the price of copper during that same time frame surging again to the $4 area was nullified.

More evidence that short term accurate predictions can be difficult.

The long term multi-year trends remain unchanged in my analysis.

Sooo....
The dollar is now trading at around 490 Cp. Anybody care to guess when it will surpass the 500 mark again?

I don't. I'd forecast 450 and 475, but 500 might seem a bit optimistic. Of course, I hope the dollar will rise and rise -- without concommittant inflation in Chile!

RWS wrote:Call it denial, but I still believe that the dollar will recover somewhat, and for some time: this is but a foretaste, I think, comparable to what sterling suffered in the 1960s and '70s. The real collapse for America is some years in the offing.

True that.

I have been cashing in my Aussie dollars lately.. i have managed to take out 400mil at a time which has been interesting ( i was only ever able to take 300mil on any given day).. with the AUD-CLP at a 12month high and the AUD-USD also at all time highs.. its been exciting time for my humble self..

sorry to brag.. but considering the detrimental effects the US economy has had on the ASX (australian stock exchange) in the past 6 months.. something as positive as a good exchange rate has been making my day..

So, Charles, for those of us outside the country: what have Chilean interest rates been running?

I know that the poll runs only 'til the Twentieth of this month, and I recognize the improbability of continued significant rise in the dollar against the Chilean peso. Still, it is possible . . . . Care to add "525" and "550" to the chart, Charles?