Description

This paper characterizes Chile’s spot foreign exchange (FX) market using transaction-level information reported by banks over the period 2004–2025. Data from the Triennial Central Bank Survey of Foreign Exchange and Over-the-Counter (OTC) Derivatives Markets show that Chile’s FX market has experienced sustained growth in trading volumes, reaching in 2025 a level equivalent to approximately 3.1 times GDP. The analysis highlights the central role of the interbank market in overall spot market activity, as well as the relevance of transactions associated with derivatives. In terms of counterparties, the real sector accounts for a significant share of activity, with mining companies acting as net suppliers of foreign currency, while nonmining firms exhibit net demand, mainly associated with imports and external debt obligations. These developments are consistent with Chile’s increasing financial integration, the expansion of international trade, and the growth of external assets and liabilities vis-à-vis non-residents.