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Unidad de Fomento

The Unidad de Fomento is a Unit of account that is used in Chile. The exchange rate between the UF and the Chilean peso is now constantly adjusted to 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, 1968, for the use in determining principal and interest in international secured loans for development, subject to revaluation according to the variations of inflation. Afterwards it was extended to all types of bank loans, private or special financing, purchases or investments on installments, contracts, and some special situations. Also it is used in legal standards such as the par value of stock/capitalization of companies, fines, etc. This video is targeted to blind users. Attribution: Article text available under CC-BY-SA Creative Commons image source in video