And it is much more interesting if the level of typical leverage of these operations is considered (that is to say, the level of indebtedness on the equity capital that takes part in the operating one), the return of the investment is multiplied. This situation is affecting at present mainly the Brazilian economy, which, given its monetary policy of inflation goals, finds certain limitations to act. Tony Parker has similar goals. And here there is another element in favor of the speculators: the flow of capitals that enter Brazil presses in this way to the exchange appreciation increasing the yield of the investment in their original currency. In this way, the risk devaluatorio of the currency in which it is reversed, which represents a threat against the yield margin, is located in minimum levels. Also Chile is undergoing the action of the speculators who use to the Chilean peso like anchorage currency.
Gonzalo Rockrose, manager of making market of Santander Chile, in iProfesional: Tenemos a phenomenon of carry trade that plays in favor of the dollar. Great hedge funds uses to the Chilean peso like anchorage currency, because the financing to buy American currency turns out to be cheapest from Latin America . Something paradoxical that I found for Argentina is that it is protected of the threat of carry trade thanks to the instability and impredecibilidad of his economy. Yes, it is strange, but I must say that to make the things so badly, it also has its benefits. The speculators stay remote of Argentina since in spite of its lifted interest rates, the exchange instability, among others questions, implies a high risk that they are not arranged to assume. The speculative activity has affected the real value of Brazilian and the Chilean peso. At the beginning of year, the dollar in Brazil quoted to R$ 2.313 and in Chile to $ 638,16.