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Credicorp See Potential for USDCLP Climb to 950-975

CHILE
  • According to a Bloomberg report, Credicorp economists are expecting further weakness for the Chilean peso in the first half of this year, predicting USDCLP to rise to between 950-975, in the midst of high volatility.
  • However, Credicorp do then see the peso strengthening back to about 870/USD, broadly in line with its fundamentals, toward the end of the year as the Fed relaxes monetary conditions.
  • Credicorp do not see the BCCh resuming the foreign reserve accumulation program before the bulk of the bank’s rate cuts are complete and the return of the peso to a level consistent with its fundamentals. The report suggests their current fair value is between 850-860.

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