Unidad de Fomento

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Unidad de Fomento

A non-circulating currency in Chile. It is adjusted for inflation relative to the Chilean peso (it was formerly adjusted relative to the Chilean escudo) so that its value remains constant. It was created in 1967 and was originally used to help the Chilean government pay its loans for international development.
References in periodicals archive ?
Most Chilean banks' medium- and long-term assets and liabilities are denominated in inflation-adjusted pesos using the Chilean Unidad de Fomento. Inflation moderated to 0.7% from 1.1% in 4Q15, reducing net interest margins for most banks.
MetLife also lent the following amounts in its local currency accounts: more than 1.2 billion Mexico pesos; approximately 45 billion Japanese yen; approximately 400 million Australian dollars; 20 billion South Korean won; and more than 4 million Chilean Unidad de Fomento (UF).