Chile The Chilean Unit of Account (CLF), also known as the Unidad de Fomento (UF), is a unique financial unit used in Chile. Unlike traditional currencies, the UF is not a physical currency but an inflation-indexed unit that adjusts daily based on the Consumer Price Index (CPI). The Central Bank of Chile manages this system to protect long-term contracts, loans, and mortgages from inflation. As a result, many Chileans conduct large financial transactions, such as real estate purchases and business contracts, in UF rather than the Chilean Peso (CLP). The value of the UF fluctuates to maintain its purchasing power, making it a crucial tool for financial stability in Chile.
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Last updated: Exchange rates here are informational, reflecting mid-market rates which fluctuate regularly. For an estimation of the rates offered by Instarem, please check our currency conversion calculator at the time of transfer.
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Disclaimer: All information in this article is provided for general knowledge and educational use only. It should not be considered legal, tax, or financial advice. We recommend contacting a licensed expert in your area for assistance with specific concerns.
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