100 Pesos (Central Bank of Chile) – Chile

As of 2025, Chile's currency situation is defined by a period of significant volatility and structural adjustment for the Chilean peso (CLP). The currency has faced sustained pressure from a combination of internal and external factors. Externally, a stronger US dollar driven by global monetary tightening and lower commodity prices—particularly for copper, which accounts for over half of Chile's exports—has reduced foreign exchange inflows. Internally, persistent domestic inflation, though moderating from its peak, has required the Central Bank of Chile (BCCh) to maintain a relatively high benchmark interest rate. This policy, while aimed at anchoring inflation expectations, has also contributed to economic slowing, creating a complex environment for the peso's valuation.

The primary domestic challenge has been navigating the aftermath of the post-pandemic economic overheating and the long-term fiscal uncertainty linked to the ongoing process of constitutional reform and debates over major social and pension system changes. These political-economy factors have periodically weighed on investor sentiment, leading to capital flow fluctuations. In response, the BCCh has utilized a flexible exchange rate as a primary shock absorber but has intermittently intervened in the foreign exchange market through a program of dollar sales from its substantial reserves to smooth out episodes of extreme volatility and provide liquidity, avoiding a disorderly depreciation.

Looking forward, the stability of the peso in 2025 hinges on several converging trends. Key factors include the trajectory of global copper prices, the pace at which the BCCh can safely lower interest rates as inflation converges to its 3% target, and the market's perception of Chile's long-term fiscal credibility as new social policies are legislated. Most analysts project a gradual stabilization of the CLP as these uncertainties clarify, with the currency expected to find a new, weaker equilibrium range compared to the pre-pandemic decade, reflecting both global financial conditions and Chile's evolving economic model.