The Chilean peso recently weakened to over 500/US$ and, with support for rate cuts within the central bank growing, we expect it to fall to around 520/US$ by year-end. Meanwhile, Brazil’s decision to remove its IOF tax on foreign investor inflows suggests that the authorities are becoming increasingly concerned about the impact of a depreciating currency on inflation.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services