The Final Exchange Rate of the U.S. Dollar to Chilean Peso on September 8th

The Chilean economy, after a strong fiscal response in 2021 that saw growth of up to 11.7% following the coronavirus pandemic, is expected to experience economic recovery in 2025, with a real GDP growth of 2.2%. However, the road to recovery is not without challenges.

Inflation in Chile is projected to decrease, but prices of fuels and foods remain above their long-term trend. This trend has been influenced by strong demand pressures, increases in commodity prices, supply interruptions, and peso depreciation.

The Chilean peso, the official currency of Chile regulated by the Central Bank of Chile, is divided into 100 centavos. The U.S. dollar closed at an average of 969.52 Chilean pesos on September 8th, but it has seen a decrease of 0.42% in the last week. Despite the weekly decline, the U.S. dollar maintains an increase of 4.31% on an annual basis.

The recovery in the labor market in Chile has been slower, and the country faces structural challenges such as the cost of capital, labor force education, energy and infrastructure policies, social instability, and high corporate tax rates. Inequality remains high in Chile for World Bank standards, and the country has considered the introduction of a wealth tax but has not yet implemented it.

Chile's future growth prospects are limited due to low levels of public and private capital accumulation and limited productivity growth. The country is also experiencing the highest public debt in three decades due to inflation and economic factors.

Coins of 5, 10, 50, 100, and 500 pesos are in circulation. Notably, the Central Bank of Chile announced the withdrawal of 100 peso coins created between 1981 and 2000. Unfortunately, there are no available data on the current number of remaining 100-peso coins minted in the year 2000 or later that are still in circulation.

Foreign Direct Investment (FDI) in Chile remains below the levels recorded more than a decade ago. The U.S. dollar ended two consecutive sessions with a negative trend on September 8th, adding to the economic concerns.

Despite these challenges, Chile continues to navigate its economic recovery. The country's resilience and its strategic position in the global market make it an attractive destination for investors and a key player in the global economy.