The Chilean peso is the official currency of Chile since 1975. Its ISO code is CLP, and its symbol is ($).
Banco Central de Chile, the Chilean central bank, issues the peso with the currency subdivided into 100 centavos.
The current peso was introduced in 1975 as the third currency in a succession of different pesos. The first of them was adopted in 1817 to replace the Spanish colonial reals with a rate of 1 peso per 8 reals.
In 1851 the value of the peso was pegged to the French franc at a rate of 5 francs per peso. The same year the reals and the escudos (another subdivision of the peso) were removed, and the peso was subdivided into 100 centavos.
In parallel, gold coins were issued with a different value. One gold coin was 1.35 gr of gold, while one French franc equaled 1.45 grams of gold.
In 1885 Chile adopted the gold standard, and the Chilean peso was pegged to the British Pound at a rate of 13.33 Pesos per 1 British pound.
In 1914, the opening of the Panama Canal and the consequences of the World War I caused an economic downturn in Chile, and the devaluation of the currency, forcing the government to introduce a monetary reform in 1926.
The Banco Central de Chile was created, and the Chilean peso was devaluated to a rate of 40 pesos per 1 British pound.
In 1932 the gold standard was abandoned and the Chilean peso devaluated further. During the 1950s, hyperinflation hit the country and the peso fell further until, in 1960, the peso was replaced by the escudo at a rate of 1,000 pesos per 1 escudo.
The life of the escudo extended from 1960 to 1975 until the new peso replaced it at a rate of 1000 escudos per 1 new peso.
The new peso was allowed to float against a basket of currencies according to a “crawling band system” until 1982 when the peso was pegged to the dollar. In 1984, the crawling band system was restored
In 1990, the Chilean Central Bank was granted full operational autonomy, and in 1999, the Chilean Peso was allowed to float free against other currencies.
Since the introduction of the floatability, the Chilean peso has remained relatively stable against its main peers, although the Central Bank of Chile has been forced to perform occasional market interventions to stem excessive peso volatility.