Unidad de Fomento

100 EUR = 3.027 CLF 1 CLF = 33.03 EUR

100 CHF = 2.481 CLF 1 CLF = 40.3 CHF

The Unidad de Fomento (plural Unidades de Fomento, UF acronym ) is a currency of account used in Chile, the exchange rate to the peso permanently to the inflation index IPC ( Índice del Precio for Consumer - Consumer Price Index ) is adjusted. Thus, the value remains ( the purchasing power ) of a Unidad de Fomento constant over time, while nominally against the peso appreciates usually ( but can be devalued seasonally or due to the recession ).

The UF was 40 ° on January 20, 1967 created by Decree N to allow an inflation- adjusted rate of return for captured on the international financial development loans. At that time, Chile suffered under very high inflation rates. International investors thus had thanks to the UF not engage in the often rated as incalculable risk of inflation of the local currency, which should facilitate foreign investment in Chile. This hope is also expressed in the name, Unidad de Fomento translates approximately to promote unity.

Later, the use of spectrum has been expanded so that the Unidad de Fomento is used in many long-term contracts of all kinds in Chile today, such as bank loans, private investment, mortgage loans and in some cases even charges. Another object came to UF in the legal field, where it serves as a nominal value of corporate stocks and shares, as denomination of penalties and similar purposes. Over time, it became the preferred measure of construction costs, real estate values ​​and collateralised loans in the private and public sectors.

Since the Unidad de Fomento not exist as a means of payment in the form of ausgemünztem cash obligations in UF will be paid in Chilean pesos. The conversion is done according to the announced by the Central Bank ( Banco Central de Chile) current exchange rate.

A similar unit of account is the December 31, 1974 ( DL 830, artículo 8) introduced Unidad Tributaria Mensual (UTM Spanish for monthly tax unit, for short), which is used for the calculation of taxes, fines and duties. It is in contrast to UF but not used as a financial instrument. It is calculated from the Servicio de Impuestos Internos ( SII, Chilean tax office ) and does not have the rank of a currency.

Calculation of the Unidad de Fomento

When introduced in 1967 the Unidad de Fomento had a value of 100 Chilean escudos (E ° ) of the then outstanding currency in Chile, and was then adjusted quarterly in accordance with the development of the current consumer price index for the previous quarter. In May 1975 certain Supreme Decree N ° 280, that the UF would be adjusted in future monthly. With the currency conversion from escudos to pesos on 29 September of the year ( Decree Law N ° 1123, published on August 4, 1975), the value of UF in pesos was specified. A daily calculation was introduced in August 1977 by Supreme Decree N ° 613 of 14 July of the year. Since 1990, the Chilean central bank determines the value of the Unidad de Fomento on the basis of the Instituto Nacional de Estadísticas de Chile (INE, National Statistics Office Chilean ) established CPIs.

The calculation is continued daily. It is calculated at the beginning of each month for the period between the 10th of the current month and the 9th of the following month via the geometric mean of the change in the CPI of the previous month using the following formula:

Here are the current day, the previous day and the daily value adjustment factor. This can be calculated as follows:

Here are the monthly percentage change in the CPI of the previous month and the number of days of the current calculation period.