Written by Ian Cardenas, Lawyer
On May 7, 2025, a key regulatory development came into effect that could reshape the role of the Chilean peso in international finance. The Financial Market Commission (Comisión para el Mercado Financiero, or CMF) enacted Circular No. 2,363, following a public consultation process initiated in January. This regulation amends Chapter 8-1 of the Updated Compilation of Banking Regulations (RAN), aiming to eliminate structural frictions that have historically limited the international use of the Chilean peso.
While the reform may appear technical on the surface, its implications are both strategic and timely. In a global economy where capital flows freely and investors seek predictable, transparent markets, Chile is signalling its readiness to evolve as a financial hub with a more accessible and dynamic capital market.
What Changed (And Why It Matters)
At the heart of the reform is the removal of certain procedural and legal hurdles that foreign corporate clients faced when trying to open overdraft lines tied to Chilean current accounts. Specifically, non-resident legal entities are no longer required to issue a traditional Chilean promissory note (“pagaré”) to access these credit lines. Instead, equivalent international instruments (legally enforceable in their own jurisdictions) may now be used, provided they are approved by the legal counsel of the issuing bank.
Moreover, the regulation empowers banks to waive even this requirement for institutions with strong credit ratings (equal to or above Chile’s sovereign rating) or those classified as Global Systemically Important Banks (GSIBs), subject to each bank’s internal risk policies. These changes are not only pragmatic; they are progressive. They align Chile’s banking practices with international norms, reduce transaction costs, and open new paths for cross-border financial operations.
This shift is part of a broader policy roadmap. Since 2021, Chile has allowed the remote opening of current accounts by non-residents using digital tools, a forward-thinking move that anticipated the growing demand for remote financial services. And in 2024, the Central Bank of Chile took the bold step of authorising cross-border transactions in Chilean pesos, laying the monetary foundation for this regulatory leap.
A Step Toward Deeper Market Liquidity
By easing access to peso-denominated products for foreign entities, Chile takes a step closer to increasing the liquidity and depth of its domestic capital markets. These regulatory changes are designed to modernise the system, and also to actively promote the Chilean peso as a currency fit for global operations.
In a world increasingly shaped by macroeconomic volatility and deglobalisation trends, offering a robust and reliable local currency alternative adds significant value. The more that foreign participants can operate seamlessly in pesos, the more attractive Chile becomes, as a destination for investment and as a platform for regional financial activity.
Why Global Investors Should Take Note
The success of these reforms will, to a large extent, depend on how enthusiastically Chilean banks adopt the new framework. But the message from Chile’s regulators is clear: the country is committed to transparency, market modernisation, and financial inclusion on a global scale.
For international investors, this marks an opportunity. With a stable macroeconomic environment, a history of institutional soundness, and now, a more internationally aligned financial framework, Chile stands out in Latin America as a forward-looking, investor-friendly market.
As nations compete for global capital, reforms like these demonstrate that Chile is not content to remain static. Chile is evolving, methodically, responsibly, and with an eye on the future. For those considering long-term investment in the region, Chile is not only open for business; it is actively improving the rules of engagement in order to make it a more-friendly destination for foreign investment.
Conclusion
The implementation of Circular No. 2,363 is more than a technical banking adjustment, it is a strategic move to place the Chilean peso and financial system on the international map. By reducing legal and operational frictions, Chile is enhancing its appeal to foreign investors and asserting its commitment to a more integrated and competitive market.
Now is the time for global financial players to take a fresh look at Chile as a source of commodities, but also as a growing financial gateway in Latin America.
Harris Gomez Group METS Lawyers ® opened its doors in 1997 as an Australian legal and commercial firm. In 2001, we expanded our practice to the international market with the establishment of our office in Santiago, Chile. This international expansion meant that as an English-speaking law firm we could provide an essential bridge for Australian companies with interests and activities in Latin America, and to provide legal advice in Chile, Peru and the rest of Latin America. In opening this office, HGG became the first Australian law firm with an office in Latin America.
As Legal and Commercial Advisors, we partner with innovative businesses in resources, technology and sustainability by providing strategy, legal and corporate services. Our goal is to see innovative businesses establish and thrive in Latin America and Australia. We are proud members of Austmine and the Australia Latin American Business Council.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It does not create a solicitor-client relationship, and readers should seek independent legal advice for their specific circumstances. Harris Gomez Group accepts no liability for reliance on this content.