Chilean Peso, after General Strike, Reaches Lowest Exchange Rate Ever
RIO DE JANEIRO, BRAZIL – The Chilean peso fell to its lowest level ever against the US dollar on Tuesday, November 12th. With the general strike in the country, even after the government announced it would change the Constitution, the dollar climbed three percent in this session and stood at 783.82 pesos, a record high. This level exceeded the 2002 peak when the dollar was worth 750 pesos.
The series of protests that Chile has been facing for four weeks led to a 10.37 percent rise in the dollar in the period. The demonstrations began as a resistance to the increase in the subway fare, which has now been revoked and began to question social inequality and the increase in the cost of living, as well as the current Constitution, inherited from the dictatorship of Augusto Pinochet (1973-1990).
The current Charter, in force since 1980, is pointed out as the source of inequalities by experts and demonstrators. Since it was written and promulgated, the Constitution has undergone more than 200 changes in 40 articles, but critics say it lacks legitimacy. Furthermore, the document does not determine that the State should provide health and education as rights.
In addition to the depreciation of the peso itself with the crisis that the country is facing, investors in the country tend to allocate resources in the American currency as risk protection, since the dollar is one of the safest investments in the world.
Currently, investors’ greatest fear is the outcome of the new Constitution. The Chilean stock market fell 1.6 percent on Tuesday and has accumulated a decline of 11.5 percent since protests began.
Also in the session, the Chilean country risk measured by the five-year Credit Default Swap (CDS) rose 12 percent to 47 points, the highest since June.
On Tuesday, the Brazilian real suffered the effects of the crisis in Chile and Bolivia, which is now ungoverned after the resignation of Evo Morales. In Brazil, the dollar rose 0.62 percent in the session and returned to R$4.1680, the same as last Friday when former President Luiz Inácio Lula da Silva was released from prison in Curitiba.
Source: Folhapress
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10,660.94
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2,848,945
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 172,457.76 | +0.66% | +9.73% | 171,324.31 | 172,715 | 171,132 | — |
| USD/BRL | 5.67 | +0.45% | +7.09% | 5.64 | 5.67 | 5.63 | — |
| SELIC | 13.75% | — | — | — | — | — | |
| PETR4 | 45.30 | +1.34% | +39.43% | 44.70 | 45.44 | 44.62 | 23,431,200 |
| VALE3 | 63.50 | -0.70% | -3.30% | 63.95 | 64.24 | 63.12 | 11,175,700 |
| ITUB4 | 42.27 | +1.42% | +7.66% | 41.68 | 42.56 | 41.62 | 19,532,400 |
| BBDC4 | 14.52 | +1.40% | -25.46% | 14.32 | 14.54 | 14.27 | 32,353,600 |
| BBAS3 | 15.10 | -2.45% | -32.89% | 15.48 | 15.60 | 14.98 | 85,573,900 |
| B3SA3 | 14.89 | +0.88% | +2.90% | 14.76 | 14.94 | 14.53 | 34,792,900 |
| ABEV3 | 15.79 | +0.25% | +15.85% | 15.75 | 15.83 | 15.64 | 13,254,800 |
| WEGE3 | 51.31 | -0.66% | +14.48% | 51.65 | 52.05 | 50.93 | 7,741,000 |
| PRIO3 | 63.30 | +0.00% | +58.93% | 63.30 | 63.83 | 62.65 | 10,460,300 |
| SUZB3 | 54.77 | -2.27% | +14.92% | 56.04 | 55.98 | 54.66 | 3,845,300 |
| RENT3 | 30.07 | +1.66% | -28.47% | 29.58 | 30.35 | 29.58 | 7,599,300 |
| AZZA3 | 15.91 | -5.86% | -45.85% | 16.90 | 17.10 | 15.72 | 6,641,600 |
| CSNA3 | 3.72 | -12.06% | -56.79% | 4.23 | 4.14 | 3.71 | 54,060,600 |
| GGBR4 | 24.73 | -0.96% | +30.78% | 24.97 | 25.09 | 24.53 | 5,458,200 |
| ENEV3 | 26.81 | -0.70% | +38.98% | 27.00 | 27.09 | 26.64 | 5,990,500 |
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