Chile's currency, stocks jump after deal on constitution struck

Credit: REUTERS/RODRIGO GARRIDO

Adds stock market rise, context

SANTIAGO, Nov 15 (Reuters) - Chile's peso currency rose 1.94% in early trading on Friday after lawmakers agreed to hold a referendum on replacing the Pinochet-era constitution, bowing to demands of protesters who want the country's social and economic model overhauled.

The local currency CLP=C, CLP= traded at 788.50 pesos per buyer dollar and 788.80 pesos for sale. The peso had plunged this week to a new low against the dollar.

The country's stock exchange .SPIPSA also jumped more that 5% on Friday morning on the news.

The two-page "Agreement for Peace and a New Constitution," signed by parliamentarians after midnight following intense negotiations, calls for a "commitment to re-establish peace and public order in Chile."

A month of riots, arson and looting has sowed chaos in the South American nation, led to the deaths of 20 people, caused extensive damage and heaped pressure on President Sebastian Pinera, who has called soldiers out onto the streets.

Creation of a new constitution has emerged as an important demand, with critics saying that Chile's existing Magna Carta, written and approved during General Augusto Pinochet's 1973-1990 military dictatorship, lacks legitimacy.

(Reporting by Fabian Cambero; Writing by Adam Jourdan; Editing by Steve Orlofsky)

((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters Messaging: adam.jourdan.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.