The Chilean Peso (CLP)
The Chilean Peso is the official currency of Chile since 1975. Its ISO code is CLP and the symbol is "$".
The Central Bank of Chile issues pesos , and 1 peso can be divided into 100 points.
The peso currently used was issued as Chile's third currency in 1975, succeeding the old peso. The first peso currency was issued in 1817, replacing the currency of the Spanish colonial kingdoms at a rate of 1 peso for every 8 kingdoms' currency.
In 1851, the value of the peso was tied to the French franc, at a price of 1 peso to 5 francs. That same year, the kingdom's currency and the escudo (another branch of the peso) were outlawed, while the peso was subdivided into 100 cents.
Meanwhile, gold peso coins are issued at different values. One gold peso coin is equal to 1.35 grams of gold, while one French franc is equal to 1.45 grams of gold.
In 1885, Chile adopted the gold standard , and the exchange rate between the Chilean peso and the British pound was 13.33 pesos per 1 pound.
In 1914, the opening of the Panama Canal and the consequences of World War I led to Chilean economic recession and currency devaluation, forcing the government to implement currency reforms in 1926.
The Central Bank of Chile is established and the Chilean peso depreciates to 40 pesos per pound.
In 1932, the gold standard was abandoned and the Chilean peso depreciated further. In the 1950s, high inflation spread across the country, and the peso fell further until 1960, when the old peso was replaced by escudos at an exchange rate of 1,000 pesos per escudo.
The life of the currency escudo extended from 1960 to 1975, until the new peso replaced the latter at an exchange rate of 1 peso to 1,000 escudos.
The peso was pegged to the U.S. dollar in 1982. In 1984, the new peso was allowed to float against a basket of currencies.
In 1990, the Central Bank of Chile gained full operational autonomy, and in 1999, the Chilean peso was allowed to float freely, independent of other currencies.
Since the introduction of floatation, the Chilean peso has remained relatively stable relative to its major peers, although the Central Bank of Chile has been forced to engage in occasional market intervention to smooth out excessive peso volatility.
