CHILE: Lower House Gives Final Approval To Pension Reform
Jan-30 12:38
- Following the Senate’s approval of the government’s pension reform bill earlier this week, the Lower House of Congress also gave its backing last night, giving final approval to the legislation. The reform will keep the private pension funds in place, which will be responsible for managing new employer pay-ins to workers’ individual pension accounts that are equivalent to 4.5% of salaries. Another employer contribution worth 1.5% of salaries will go temporarily toward increasing payouts for retirees who need extra money now.
- Total employer contributions will rise to 8.5% of workers’ salaries over nine years, and that period can be extended if necessary. The Finance Ministry said the reform will have a fiscal impact of around 1% of GDP once fully effective. Though not a small cost, Goldman Sachs has said that the reform is still positive as it will lead to an increase in domestic savings and improve the depth of the domestic capital market.
- Separately, Chile’s mining group Sonami has downplayed President Trump’s pledge for tariffs on copper, saying that such measures provide no legal, economic or strategic incentives. Sonami president Jorge Riesco said that Chile has bilateral and multilateral treaties that offer safeguards against tariffs and reminded that 75% of its copper exports go to China and Asia.
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USD: Finding a broader bid
Dec-31 12:15
- A broader bid is going through the Dollar, printing an intraday high against the Pound, AUD, CAD, CHF, ZAR, and NZD.
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EURIBOR OPTIONS: Put ladder buyer
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ERZ5 98.00/97.75/97.50p ladder, bought for flat in 2.25k total.
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