Chile Forum

Interestingly enough (but perhaps not significantly), it looks like the xe.com number could be edging upwards now that the local exchange has closed (~537).

Well, this one from Bloomberg was attention getting:
"Chilean Peso Poised to Be World’s Best Currency; Colombia Worst"
http://www.bloomberg.com/apps/news?pid= ... ZjvYNSkC.Q

I was always able to purchase Pesos with US Dollars in Concepcion at about the xe.com rate, usually not more than two or three Pesos difference per Dollar.
My understanding of the Bloomberg article is that the Dollar will remain low and might go lower for the next three months. Is that correct?

Withdraw via VISA at ATM (so factor in the 1% fee) - - about 526 CLP to the dollar this afternoon.

I miss the days of 620

Any chance that after Chile sells all those dollars things will reverse course and the USD will get stronger in the trade again?

22 June 2009 after normal market hours, weekday, ATM transaction.

Bank: Everbank
Network: Visa/Plus
Rate on xe.com before I left the dpto: 535.700
Rate on xe.com after I returned to the dpto over an hour later: 535.641
Actual rate received: 536.595

Muy bien Visa/Plus!!

There was some talking head economist on bloomberg the other day that was certain that the U.S. government bond debt and entitlement programs where going to be the next crisis. He was sure that it was not that far away. Like possibly within a few years, and at least with in this decade. Currency crisis was the next big thing coming as everyone lost faith in the U.S. goverment debt issues.

So, in the short run we are likly to see a rebound a bit in the dollar / peso given some uncertainty about commodities, but the long term not so sure about it.

gregf wrote:Withdraw via VISA at ATM (so factor in the 1% fee) - - about 526 CLP to the dollar this afternoon.

eeuunikkeiexpat wrote:22 June 2009 after normal market hours, weekday, ATM transaction.
Rate on xe.com before I left the dpto: 535.700
Rate on xe.com after I returned to the dpto over an hour later: 535.641
Actual rate received: 536.595

Interesting. I wonder whether xe.com and visa are both following overseas markets after close of trading, where the $/CLP rate may be slightly different (giving you a choice as to which market rate you get if you're paying attention). Just an idea, but it seems worth keeping an eye on if you're using a foreign cash card (I'm not).

But Greg also says "this afternoon", ie. most likely also after trading, so maybe it's not that simple.

El Mercurio was talking about 532 at closing time. It sounds like some of the $ selling was stop loss, so at least that may tail off.

James.

jehturner wrote:But Greg also says "this afternoon", ie. most likely also after trading, so maybe it's not that simple.

It was actually a withdraw made around 1 or 2 pm while markets were still open.

Some basic math, I figure my effective rate was was 528 (before the VISA fee) - - this is a card tied to a "virtual" bank, though that shouldn't make any difference, i still get the 1% exchange rate fee.

Thanks for confirming, Greg.

I got an email today from xe.com about their overhauled on-line currency trading service. I had a look and you can now buy CLP directly from the pull-down menu, which is a nice addition. I seemed unable to get a rate quotation for pesos without entering additional bank account details, however, so I'm not sure how their peso mark-down compares with other currencies (for pounds->dollars it was around 1.5% when I used it, but they also have a "best rate guarantee"). Of course the problem is if you have to send and receive wire transfers to/from xe.com you are also likely to get charged at either end, but given the recent discrepancies between xe.com and local trading rates, it might still be worth bearing in mind; if their rate is 2% more than the bank in Chile like the other day, that would still work out, albeit with more complication.

Cheers,

James.

eeuunikkeiexpat wrote:22 June 2009 after normal market hours, weekday, ATM transaction.

Bank: Everbank
Network: Visa/Plus
Rate on xe.com before I left the dpto: 535.700
Rate on xe.com after I returned to the dpto over an hour later: 535.641
Actual rate received: 536.595

Muy bien Visa/Plus!!

I received 536.595836 (actual rate) yesterday, at 11:55 AM, using the same network (Visa/Plus). The same rate. The maximum amount I can withdraw at once at Chilean ATMs is always 350 lukas, though someone on this board mentioned 375..

So far the best mouse trap I have found is to try and keep my dollar and peso accounts in the States and Chile hedged / balanced. I can not exactly do it like visa or the big boys, but it allows me at least a little more flexibility between when I withdraw from the States. A few days or a week can mean a big difference in pesos.

Indeed. I seem to be not too bad at catching the day-to-day or week-to-week fluctuations if I have enough to carry me over meanwhile. I suppose the advantage (and disadvantage) of being a small trader is that you don't affect the rates and can piggyback on what the banks are doing. But having a mortgage in Chile tends to tip the balance in favour of keeping savings locally...

James.