Chilean Peso - Value of The Peso Against The US Dollar

Value of The Peso Against The US Dollar

Between 1974 and 1979 the Chilean peso was allowed to float within a crawling band. From June 1979 to 1982 the peso was pegged to the US dollar at a fixed exchange rate. In June 1982 —during that year's economic crisis— the peso was devalued and different exchange rate regimes were used. In August 1984 the peso returned to a system of crawling bands, which were periodically adjusted to reflect differences between external and internal inflation.

Starting in September 1999 the Chilean peso was allowed to float freely against the US dollar for the first time. Chile's Central Bank —however— reserved the right to intervene, which it did on two occasions to counter "excessive depreciation". First, in August and September 2001, coinciding with Argentina's convertibility crisis and with the September 11 attacks in the United States, and in October 2002, during Brazil's presidential election.