Chile Forum

Yanez wrote:Oh i know it has been decreasing a lot, there were even some expectations that it was going to be 2.5% in December. I understand they should have lowered it because inflation has indeed come down, but not that much compared to the fall in the interest rates...

Well I think the value for the past year is still somewhere in the region of 7%, whereas recent monthly figures were close to -1%/yr, so that would actually be a pretty big drop compared with the rate cuts. What hasn't dropped that much is the 12-month value, just because the turn-around has happened quickly (remember the 2008 oil crisis?).

Yanez wrote:On the bright side, this will probably hold the dollar against the peso for another month although it wont last forever. The dollar's crash is coming

Yeah, it may well be... (OK, it must be if they're really printing that much cash). But it's not clear to me that the drop of the past week has that much to do with that.

James.

The drop has been bigger but the inflation is still if im not mistaken over 6%.

$590/$1 USD on XE.com this morning!

Oh the horror...

gregf wrote:$590/$1 USD on XE.com this morning!

Yeah, that rate cut didn't do much, did it? Now EMOL is reporting 585. It never worked like that when they were raising rates, even for much smaller changes. Apparently investors here are still offering up their dollars in order to invest locally.

http://www.economiaynegocios.cl/noticia ... p?id=59712

James.

The dollar is likley not helped by spending either. Investors likely figure that the so-called stimulus will be paid for at the printing press....with good reason. The speed of the drop is rather impressive.

John Hyre

Maybe that's just the other side of the coin and I wasn't connecting the dots. The local effect obviously wasn't just people rushing to get in before the rate cut, since it's still going on. In which case, maybe it's "seatbelts for 400" after all... . I imagine this local USD offloading must calm down a bit at some point though (unless they pass the baton to Wal Mart et al.).

James.

Shows what a lousy speculator I am. But as all things that have happened since the second half of last year, these are not normal times.

Who would've thought, the largest BC cut since 1998 and the dollar falls?

BTW, I did receive 597.60 on the PLUS system yesterday for a small w/d which tracked the real time xe,com rate quite well.

If we start heading towards 400 I might need to pack the bags for the wild wild North. My budget will hurt we if swing that wildly.

eeuunikkeiexpat wrote:BTW, I did receive 597.60 on the PLUS system yesterday for a small w/d which tracked the real time xe,com rate quite well.

Maybe we should start a little database...

jehturner wrote:

eeuunikkeiexpat wrote:BTW, I did receive 597.60 on the PLUS system yesterday for a small w/d which tracked the real time xe,com rate quite well.

Maybe we should start a little database...

'Couldn't hurt.

Is there a good place on the wiki? I haven't looked at it much.

I suppose the columns would be: date, mechanism (cirrus, exchange desk, cambio etc.), actual bank rate, xe rate closest in time, EMOL rate closest in time, dolar observado (?)

James.

PS. I could run some stats on it after a while to get percentages etc.

oof... 573 using a Visa to withdraw (1% fee factored in) -- XE says 589 at the time.. still 10 pesos lower after 1% is siphoned.

ick.