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Credicorp See 60 Pesos Of Risk Premium Priced Into CLP

CHILE
  • Credicorp analysts have suggested the Chilean peso is priced with a risk premium of 60 Pesos due to political and economic uncertainty. They believe that isolated from these effects USDCLP would be trading with in a range of 640-650.
  • A very positive result for the right-wing coalition in the weekend's elections could partially reduce this premium, however, they foresee that the premium will remain throughout the year and would only fall with more clarity on the constitutional process and the presidential election. They maintain their target of 680 per dollar by year-end.

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