Chile: Exchange rate volatility and political uncertainty raise country risk

Although it is still the lowest level in the region, the average measured in the Embi index is 200 points, its highest monthly record since June 2020 when it was at 209, while CDS recorded an average of 128 points, a record since February 2016. Economists' perspectives on the behavior that Chile's country risk will have are uncertain but with an upward bias.

The exchange rate volatility that the country has registered during the last weeks added to the prospects of lower growth and the political uncertainty due to the referendum, and the reforms being promoted by the government changed the trend that Chile's country risk indicators had been showing since the beginning of the year.

When Gabriel Boric's government took office, Chile's Subscribe to our Premium Membership Plan. Already Subscribed?