Convert 68,140 CLP to TRY

The Chilean Peso to Turkish Lira exchange rate is influenced by Central Bank rates, copper prices, inflation data, and Chinese demand, as well as CBRT interest rates, inflation data, political developments, and foreign reserve levels. Both the Central Bank of Chile and Central Bank of Turkey play crucial roles in determining the relative strength of these currencies.

Chile is basically the copper capital of the world and the peso reflects that completely. If youre trading the CLP youre essentially trading copper with extra steps because the correlation is proper strong. Chile produces about a quarter of the worlds copper supply so when copper prices are flying the peso tends to do well and when they tank it gets ugly. Chinese demand is the big driver here since China hoovers up most of the worlds copper for construction and manufacturing. The USDCLP pair is the one youll be looking at and its not the most liquid thing in the world.. spreads can be chunky especially outside of Latin American trading hours. The Central Bank of Chile runs a free floating regime and theyve been fairly orthodox with monetary policy compared to some of their neighbours which is refreshing. Political risk is something to watch though because Chile has gone through some significant political shifts in recent years and the peso has reacted to that. Not a currency most retail traders bother with but if youre into EM plays and you have a view on copper its worth having on your radar.

Where do you even start with the Turkish lira. This currency has been in freefall for years and its one of the most dramatic depreciations in modern forex history. The core problem has been unorthodox monetary policy where the Turkish government pressured the central bank to cut rates while inflation was running at absolutely mental levels.. were talking 80 plus percent at the peak. Basic economics says you raise rates to fight inflation but Turkey tried the opposite approach and the lira paid the price. USDTRY has gone from about 1.5 to well over 30 in the space of a decade which is staggering. The central bank has more recently shifted back toward orthodox policy with massive rate hikes which has slowed the bleeding but the damage to credibility takes a long time to repair. Turkeys economy actually has a lot going for it.. young population strategic location between Europe and Asia growing manufacturing sector.. but the currency situation has overshadowed everything. Trading the lira is extremely risky because of the swap costs on short TRY positions and the potential for sudden policy U turns. High reward potentially but equally high risk. Not for beginners at all.