Chile sits on the west coast of South America. Its borders touch Argentina, Bolivia and Peru. Its major resource is its minerals. It is a very wealthy country. It also has a major discrepancy between the rich and the poor. This leads to social problems.The economic policy of Chile includes Free Trade Agreements (FTA) with other countries. In fact, Chile has FTAs with the United States and the European Union. It also has FTAs with South Korea, China, New Zealand and several others. The coin of currency is the pesos. It is traded under CLP at the rate of 100 centavos per peso.
History
Chile, once part of the Aztec Empire fell to the Spanish in the 16th century. This saw the introduction of Spanish coins. Currency at the time was also gold dust and gold and silver bits. The Spanish established a mint in Chile in 1743. By this time, Chile was under Spanish rule. It fell under the viceroyalty of Peru until 1776. It then became part of the new viceroyalty of the River Plate.
Meanwhile, the coinage in 1749 included gold 4 and 8 escudos sporting a bust of Fernando VI. In 1751, the first silver coins appeared with a pillars of Hercules design. Spain continued to dominate the coin system until 1817.With the advent of independence after the wars of from 1810 to 1818, Chile began to create its own currency. The first were counterstamped Argentinean coins, particularly the 4 and 8 reales in 1833. In 1840, the first banknotes arrived in the form of 4 and 8 reales. By 1851, however, a more Chilean coinage emerged. This, the introduction of the decimal system, saw 100 centavos equaling 1 peso.
Chile altered the size and debased the coins in inflationary times. By 1942, the smallest denominations began to disappear. The country also introduced new coins that year, the 20 and 50 centavos and the 1 peso. In the 1950s, the 20 and 50 centavos disappeared then, between 1971 and 1975, the new peso came onto the money market.
The 1970s saw various currency changes. Some coins vanished, replaced while others made their first appearance. Centavos replaced escudo coins in 1975 but vanished themselves in 1983. Today there are 1, 5, 10, 50, 100 and 500 peso coins as well as 500, 1,000, 2,000, 5,000, 10,000 and 20,000 peso notes.
Obtaining Chile Pesos
It is easy to obtain Chilean currency. There are currency exchange businesses, the Casio de Cambia, across the country in the major cities. You can change your money in banks, but it is often better to use exchange shops. They offer better rates. The best rates are in Santiago. Farther from this urban center, you will find the rates increase.You can also get money from ATMs. Most banks have these machines. You can usually find the banks in the banking sectors of towns and cities.
Protecting Your Currency
Chile is overall a safe country to travel. You need to be aware of certain difficulties. Do not enter the Poblaciones or poorest areas. The outskirts may also pose problems. As a tourist, you are open to picketpocketers and other forms of petty crime. The less secure areas are bus stops, the subway (Metro), market places and tourist regions. Be more aware in Santiago, Concepción, Villarrica and Viña del Mar.As is the case in all countries, watch your wallet. Be aware of your money and possessions. Do not flash your money. Avoid insecure areas at night. Lock up your valuables in a safe place.
Using Your Chilean Pesos
The Chilean peso is necessary. You cannot use foreign currency in Chile. You must pay for all items with local currency. Whether you are backpacking in the country or shopping in the city, use the local money. It is tender for the bus and the subway. You need it for purchases throughout the country.
Travel Tips and Warnings
- The Chiten Volcano began to erupt in May 2008. The government made the area around it restricted.
- Chile has still instances of minefields. Regions to be wary include the remote sections of several national parks including Lauca and Llullaillaco as well as the borders of Peru.
- You can not use foreign currency in the country
- Women can travel freely throughout Chile. Be prepared for comments, however. The best thing you can do is to ignore them.
- Head off to the Lake District and along the foothills of the Andes.
- Lauca National Park is home to volcanoes and lakes abundant with waterfowl.
- Take the scenic road in the Carietera Austral or wander the meadows of wildflowers and forest in Torres del Paine.
- Take time to visit the island of Chloé or Rapa Nui National Park on Easter Island.
- You can also head to the very popular resort of La Serna.
Overview
Narrow Chile winds its way along the west coast of South America. It is a wealthy country with strong mineral industries and close trading ties with many countries. Chile also has a high discrepancy between its rich and poor citizens.
Currency Summary
Current currency: peso
100 centavos are equal to 1 peso.
Coins: 1, 5, 10, 50, 100 and 500 pesos.
Banknotes: 500, 1000, 2000, 5000, 10,000 and 20,000 pesos.