Since 1989, the Central Bank of Chile is an autonomous entity of technical nature, and has as its purposes to look after the stability of the currency, that is, to keep inflation low and stable over time. The Bank must also promote the stability and efficacy of the financial system and the normal functioning of internal and external payment systems, to generate a predictable environment for decision making of economic agents contributing to reduce the ups and downs of the economic cycles, thus providing a solid basis for the country´s permanent growth. For these purposes, the powers of the Bank include that of regulating the amount of currency and credit in circulation.
The Unidad de Fomento (UF) is a Unit of account that is used in Chile. The exchange rate between the UF and the Chilean peso is now (today) constantly adjusted for inflation so that the value of the Unidad de Fomento remains constant on a daily basis during low inflation. It was created in 1968, for the use of determining principal (monetary item) and interest (constant real value non-monetary item) in international secured loans (monetary items) for development, subject to revaluation according to the variations of inflation.
Afterward, it was extended to all types of bank loans (monetary items), private or special financing (monetary items), purchases (trade debtors/trade creditors being constant real value non-monetary items) or investments on installments, contracts (constant real value non-monetary items), and some special situations.
Also, it is used in legal standards such as the par value of stock/capitalization (constant real value non-monetary items) of companies, fines (payables being constant real value non-monetary items), etc.
Key Features and Coverage on RIMES
For this data source, RIMES hosts the Unit of account UF and Chilean Pesos Observed Dollar Rate.
Data items currently available include: Description, Database Domain Code, Last Price Date, Price Index and Database Symbol.