Description

This paper presents stylized facts of the Chilean currency derivatives market between 1998 and 2003. Global and sectoral statistics are analyzed in this document, which allow us to evaluate the development and utilization of currency derivatives instruments by different agents in the economy. Stands out the increasing local and crossborder turnover during the analyzed period. International statistics show a similar liquidity and a slightly lower depth of the Chilean currency derivatives market compared to other emerging economies. At a sectoral level, the institutional sector has propelled the activity of the derivatives market by its investments abroad. On the other hand, we observe a scale effect in the non-financial sector where large firms employ currency derivatives more frequently than small firms.