Voting for the presidential in Chile they threw their consequences into the fields economic. Thus, it has been seen today that the dollar took a violent fall. As is known, the elections determined that there will be a ballot between the right-wing José Antonio Kast and the left-wing Gabriel Boric.
“This morning the exchange rate showed a collapse from 32 Chilean pesos, up to $ 800 seller. Hands down, this is the biggest drop since the Great Recession, specifically since November 26, 2008 ($ 35.04). The drop is equivalent to 3.90% and is compared with the increase of 3.5% that accumulated during the past week, marked by pre-electoral nervousness “, illustrates La Tercera.
In this regard, Bloomberg analyzed that the powerful recovery of the Chilean currency shows that traders were significantly hedged against a potential first place representative from the left of Approve Dignity.
Marco Correa, chief economist at BICE Inversiones, said about this: “Part of the market estimated that Gabriel Boric would have a higher percentage of votes, so the option of Kast to win in the second round. Although his program in financial terms has received criticism, it is perceived more friendly than Boric’s with the market, which would partially favor the assets ”.
For its part, El País, from Spain, collects: “The central bank has emphasized in a statement the pillars of the Chilean economy: a ‘solvent’ financial system, a ‘solid’ fiscal situation, an ‘adequate’ level of international reserves and sovereign funds, inflation expectations’ anchored ‘at 3% and a monetary policy’ that is has adapted‘”.
The institution led by the economist Mario Marcel, in parallel, “valued the political agreements of recent days: there have been significant advances in the form of cross-cutting agreements on tax and budgetary matters, which should reduce the current levels of uncertainty”, assesses The country.
Now, before the ballot, although both candidates represent the extremes of the country’s political spectrum, most analysts assume that they will conquer the center, seeking more moderate positions.
According to the estimate of Samuel Carrasco, senior economist Credicorp Capital, “in the short term, we expect a positive reaction from the market, with the IPSA index increasing, rates decreasing and the peso appreciating. As we mentioned in previous reports, we assign a 50% probability to a government on the left ($ 850) and a 50% probability to a government on the right ($ 770), with an expected value of $ 810? “.
La Tercera also published the opinion of Ricardo Bustamante, Capitaria’s head of trading studies, who adds a similar consideration: on candidates who will show themselves more “conservatives”, Given a favorable scenario for investors, considering that they have more pro-market projects and economic policies would reactivate investment and growth in the country.
However, the foreign exchange market ignores this time the new increase in the dollar index. “The indicator that measures the dollar against a basket of six liquid currencies, including the euro, rises 0.07% and renews highs in more than 16 months. It also ignores copper, whose futures show a decline of 0.25% “closes La Tercera.
Bloomberg, LaTercera, ElPaís, Wikipedia,