The dollar reached historic value and the Chilean stock market closed this Monday (20th) down 6.18% (after opening the day at -7%), one day after the victory of leftist Gabriel Boric over conservative José Antonio Kast in the presidential election.
The American currency closed the day quoted at 876 Chilean pesos, the highest level since March 2020, at the beginning of the Covid-19 pandemic. Analysts forecast that the dollar could reach 900 Chilean pesos this week.
“This behavior is because investors prefer more pro-market policies, they are suspicious of the conditions that will exist under Boric’s presidency,” said Ricardo Bustamante, head of trading studies at the consulting firm Capitaria, to Diario Financiero. “In this scenario, if the market continues to consider an even more negative situation for the country, the 900 peso barrier can be easily broken in the very short term.”
This Monday, after meeting the current president, Sebastián Piñera, Boric did not give names from his ministry. “We are aware that it is important for the country to provide certainty. Let’s act accordingly, we don’t have names that I can make public at the moment”, declared the former student leader at a press conference at Palácio de La Moneda (government seat).
The meeting with Piñera was Boric’s first official act after his victory in the second round of elections, in which he won 55.8% of the vote – more than ten percentage points ahead of Kast.
“I think it is important to highlight the character of the State (of the meeting with Piñera) and the continuity of the State, in addition to the legitimate political differences that sometimes, as in this case, can be very large”, said the still deputy for the Magallanes region.
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