{"id":49566,"date":"2019-11-12T11:13:05","date_gmt":"2019-11-12T16:13:05","guid":{"rendered":"https:\/\/olduvai.ca\/?p=49566"},"modified":"2019-11-12T11:13:09","modified_gmt":"2019-11-12T16:13:09","slug":"panic-pure-panic-chilean-peso-collapses-to-800-usd-blowing-through-record-lows","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=49566","title":{"rendered":"&#8220;Panic, Pure Panic&#8221; &#8211; Chilean Peso Collapses To 800\/USD, Blowing Through Record Lows"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/markets\/chilean-peso-collapses-800usd-blowing-through-record-lows\">&#8220;Panic, Pure Panic&#8221; &#8211; Chilean Peso Collapses To 800\/USD, Blowing Through Record Lows<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Chilean peso&nbsp;<strong>extended a four-day losing streak&nbsp;<\/strong>on Tuesday, sinking by the most in eight years, to&nbsp;<strong>a new record low at 800\/USD.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bfm6BF2.jpg\" alt=\"\"\/><figcaption><em>Source: Bloomberg<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Bearish market sentiment, political chaos, and a national strike intended to ratchet up pressure on the government and its plans to change the constitution&#8230;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Berlin Wall commemorations: In the first half of 1989 &#8220;there wasn&#8217;t a sense of imminent collapse&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bfmBAC1.jpg\" alt=\"\"\/><figcaption><em>Source: Bloomberg<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/bfmBAC1.jpg?itok=HBV2QKHw\"><\/a><em><strong>\u201cThis is panic, pure panic,\u201d<\/strong><\/em>\u00a0said Felipe Alarcon, chief economist at EuroAmerica in Santiago.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><strong>\u201cIt\u2019s the gringos leaving the country.\u201d<\/strong><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, Bloomberg reports that Citigroup believes that the&nbsp;<strong>Chilean peso is not yet at a stage where BCCh would intervene<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The central bank last stepped into market in 2009,<\/strong>&nbsp;when CLP\u2019s real effective exchange rate was ~9% weaker than the current level (REER was about 3% weaker in 2014-15 vs now and the bank didn\u2019t intervene back then).<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bfm4B38_0.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/bfm4B38_0.jpg?itok=JwLb1n_l\"><\/a>Citi adds that Chile\u2019s low growth, low inflation environment means country can afford weaker currency without much discomfort.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But,&nbsp;according to&nbsp;Eurasia,<strong>&nbsp;President Ivan Duque\u2019s low political capital \u201cheightens social risks<\/strong>&nbsp;as discontent with the administration will probably increase adherence to a national protest\u201d planned for Nov 21.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Panic, Pure Panic&#8221; &#8211; Chilean Peso Collapses To 800\/USD, Blowing Through Record Lows The Chilean peso&nbsp;extended a four-day losing streak&nbsp;on Tuesday, sinking by the most in eight years, to&nbsp;a new record low at 800\/USD. Bearish market sentiment, political chaos, and a national strike intended to ratchet up pressure on the government and its plans to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[3386,27548,1036,4318],"class_list":["post-49566","post","type-post","status-publish","format-standard","hentry","category-economics","tag-chile","tag-chilean-peso","tag-currency-collapse","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49566"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49566\/revisions"}],"predecessor-version":[{"id":49567,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49566\/revisions\/49567"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}