Chile is one of the country credited with inventing a second currency as a means to tackle their growing inflation.
The Unidad de Fomento (UF) is a Unit of account that is used in Chile. The exchange rate between the UF and the Chilean peso is now (today) constantly adjusted for inflation so that the value of the Unidad de Fomento remains constant on a daily basis during low inflation.It was created on January 20, 1967.
It has become the preferred and predominant measure to determine the cost of Real Estate (variable items valued at Historical Cost being updated), values of housing (historical variable real value non-monetary items being updated) and any secured loan (monetary item), either private or of the Chilean government. Individual payments are made in Chilean pesos (the country’s legal tender), according to the daily value of the UF.
Chile’s model of second currency used to tackle inflation in realistic terms.
|I would like to ResonVate|
|with ideas on||creating value,identifying a need|
|which can be applied in||valuation of intangibles, benefit realisation|
|in areas like||Financial markets, Real estate, Valuation|