Studies in Economic Statistics N° 132: The Chilean Foreign Exchange Market: An International Comparison, 1998-2019
Exchange market
Derivatives and Spot
Derivative instruments are forward contracts in which two parties undertake to exchange an amount of an asset at a given price and date in the future. These enable economic agents to hedge against the risks associated with fluctuations in exchange rates, interest rates and commodities, among others.
Within the derivatives market, the external sector series stand out, which reflect the expectations of non-residents on the evolution of the exchange rate; as well as the series on foreign interest rates, which have the objective of hedging the costs of the indebtedness of banks and other sectors. A spot transaction, on the other hand, is a spot purchase or sale of foreign exchange.