Chile Forum

yea, we have had heavy contact from developers recently. You know the guys that would not give us the time of day two years ago, now begging for meetings. We have also found when negotiating for clients the developers are willing to more or less give us anything we ask for. They use to be fairly, take it or leave it.

The POWER of supply and demand, strikes again!

"dirty floating".... describes bankers quite well!

http://www.rgemonitor.com/emergingmarke ... epressions

MikieO wrote:"dirty floating".... describes bankers quite well!

In the future to near future, hanging from lampposts even better ...

So if I'm reading this right, the time to purchase a property in the Villarrica area would be sometime later this year or 2010 as Holiday Home owners start to offload their excess property? I would be interested in some advice in this area as we are contemplating purchasing later this year.

gregf wrote:Ive got the feeling its going to go up again, not down... if that news only dropped it back to where is more or less been for the past month, then it seems like it wont be enough to take it lower. Possible jump up for the USD in chile in the next 2 weeks?

The rate has been holding up pretty well so far, but it could drop further once the government's dollars actually materialize... An extra $50M/day on the market has to have some effect.

They don't seem to be moving things so far.
Got to this in my xe
602.8247104189

I must say so far I am just loving the way Chile does currency intervention:

1 USD = 609.706 CLP

At this rate we will be to 700 by the end of the month.

What a pitiful waste. Just 8 months ago they intervened what was it, the second time in eight years, to strengthen the dollar. Now they want to weaken it.

Those dollars could have been used for what ... energy independence infrastructure, education improvements, tourism promotion and development, incentivizing international companies to relocate to Chile, R&D for more value added manufacturing, etc.

They are suppose to be buying these pesos with dollar reserves primarily to fund the new injections in construction, loans, social payments.

My maid by the way reported she got an 80,000 peso bonus from the government.

Up,up and away?
Could world wide demand for the dollar send it upward???

..*snip*..Simon Derrick, currency chief at the Bank of New York Mellon, said the implications are obvious. “The global bullion of the last eight years was funded on dollar balance sheets, so the capital destruction we’re seeing leaves banks starved for dollars. Dollar is clearly going to appreciate a lot further,” he said

http://www.telegraph.co.uk/finance/fina ... rtage.html

I haven't seen any report that the government has actually started selling their $3bn yet (though I'm not sure how they are financing the $40k handouts). When they were buying $50M/day last time, it was discussed most days on EMOL as a factor influencing the rate. So far it's just news indirectly influencing what people are willing to pay, AFAICT.

To be honest the government bought the dollars at <500 and now they're going to sell them at 600, so Chile isn't doing badly out of it, whatever they could have spent the money on in the meantime... Not a bad return for 8 months?

James.

murf wrote:http://www.telegraph.co.uk/finance/financetopics/recession/4939796/Europes-banks-face-a-2-trillion-dollar-shortage.html

That's interesting. Could certainly be a bigger effect than Chile's $3bn!