About the Chilean Peso

Country: Chile
Currency: Peso
Alias: Chilean peso
ISO 4217 CODE: CLP/152
Symbol:	Ch$

The Chilean peso is the national currency of the República de Chile, and is regulated by Chile’s Central Bank. A long-time colony of Spain, Chile had used Spanish currency for centuries until 1835, when a domestic form of the peso was first introduced. In spite of the fact that the country was run by a military government for almost two decades in the late 20th century, the economy prospered due to sound fiscal policies, nationalization of key industries, and an influx of foreign investment. The economy has faired even better since Chile’s return to democracy in 1990. In recent years, modest inflation and strong international trade ties have helped to keep the peso’s value up.

Background of the Chilean Peso

Chile is home to more than 16 million people residing on a narrow strip of South America’s western coast. The region was first colonized by Spanish and Portuguese settlers in the 16th century, rapidly augmenting the native population with thousands of European immigrants. Spanish currency was the primary tender used up until 1835, when Chilean peso coins were minted and distributed for the first time.

Chile’s modern history has been marked by a series of coups involving both military and non-military governments, The country was plagued by an economic depression that began in the late 1960s. This troubled period culminated in 1972-73, with inflation escalating at a record pace.

The modern Chilean peso was introduced in 1975 to replace the escudo For many decades, Chile’s chief source of national income was derived from exports of copper. In recent years, the reliance on copper exports has diminished, and now, wood products, fruit and wine constitute the majority of exports.

In recent years, Chile has earned accolades for its unique national pension plan – a privatized system under which most workers must contribute 10% of their annual salary to a retirement account that is invested in a variety of domestic and international financial instruments. The Chilean pension system is frequently cited as an ideal model by politicians in the United States of America, who are attempting to salvage their troubled plan managed by the Social Security Administration.

The peso had been divided into 100 centavos, but on account of escalating inflation, the practice was suspended in 1984. Current denominations for coins are 1p, 5p, 10p, 50p, 100p and 500p. Denominations for banknotes are 500p, 1,000p, 2,000p, 5,000p, 10,000p and 20,000p.

Article: Chinese Yuan