Chile Peso To Hold Stable As Economic And Political Worries Fade

• The Chilean peso is set for a period of stability as economic and political worries continue to fade, validating the central bank's decision to unwind an intervention programme implemented last year to calm market turmoil, a Reuters poll showed.
• The foreign exchange and dollar liquidity intervention programme was implemented in mid-July 2022 to help the proper functioning of the foreign exchange market and facilitate the adjustment of the economy and financial markets to external and internal conditions.
• In July last year, the peso plunged to a record low of 1,050 per U.S. dollar in reaction to a sharp drop in the price of copper, Chile's top export, that added to concerns over a proposed reform of its market-friendly constitution.
• However, the peso recovered in the second half of 2022 and has settled close to 800 since the start of this year due to better demand for metals after China reopened its economy.
• The currency is forecast to remain near 800 in coming months, trading at 811 per dollar in one year, where it was on Tuesday, May 2, according to the median estimate of 14 foreign exchange experts surveyed on April 28 to May 3.

(Source: Reuters)