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Oxford Economics Says Peso’s Rally Will Be Short-Lived

  • A senior economist at Oxford Economics predicts the Chilean peso will likely weaken to 840/USD by the end of the year on frail fundamentals, according to a note.
  • Oxford Economics predict that growth in China, Chile’s top trading partner, will be significantly weaker than expected in both the short- and long-run.
  • Furthermore, the ongoing debate surrounding the new attempt at rewriting Chile’s constitution to keep political uncertainty high for two years.
  • The note also points out that Chile’s central bank are to announce key rate cuts as soon as May.

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