Chilean peso plummeted more than 15% over the last month

Chile's tumbling currency and runaway inflation are testing the country’s economic and financial systems, and complicating President Gabriel Boric's plans to push through a tax reform bill to fund ambitious social programs.

The Chilean peso has plummeted more than 15% over the last month, briefly hitting 1,000 pesos per dollar for the first time ever, sparking alarms. Yearly inflation hit 12.5% in June, the highest in nearly three decades.

According to Finance Minister Mario Marcel,the country's market-orientated model and free-floating exchange rate meant that while the currency could be more volatile, this didn't necessarily reflect wider strains.

Source: reuters.com

 

Photo source: Dreamstime.com


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