For good reasons, the Chilean economy is open commercially and financially to the world, and, because of the nature of its exports, is strongly affected by shocks coming from abroad. In the past we have benefited from the external situation. We have also felt the consequences when the external situation has deteriorated. We cannot isolate ourselves from these external impulses, and it would not be a good idea to do so. The important thing, however, is that we have developed a policy framework that allows us to absorb and mitigate these shocks in the best way possible. Chile needs to keep a robust macroeconomic and financial policy scheme that helps it overcome effectively these external disturbances at the lowest possible cost for the country. BIS central bankers’ speeches  1  Part of this scheme is the autonomous central bank with clear-cut objectives: low, stable inflation, and the normal operation of internal and external payments. Our monetary policy is oriented at attaining an explicit inflation target over a medium-term horizon, by applying an independent monetary policy that contributes to stabilize the business cycle. Its complement is a floating exchange rate regime. Another important element is responsible and predictable fiscal policy making, as reflected in its governing rule. Add a sound financial system, with proper regulation and supervision. Plus ever growing commercial and financial integration. The fact that the deterioration of the developed economies has not hit our exports so hard is the result of this diversification of external markets, among other factors.

An important development in this decade has been the growing significance of the international dimension of Islamic finance and its increased role in the international financial system. Islamic finance has, during this period, been expanding steadily at a double digit pace of growth. The total Islamic financial assets size is estimated to be more than $ trillion. Such dynamic growth has been driven by two key factors: firstly, the pace of innovation in Islamic finance has been able to provide the extensive range of financial solutions to households, businesses and governments with attractive pricing and innovative structures; and secondly, the resilience derived from its inherent features which has provided the foundations for financial stability in the Islamic financial system. The advancement that has been achieved in the sukuk market in particular, testifies to the ability of Islamic finance in meeting the requirements of today’s differentiated demands of the modern economy. The Sukuk epitomises the very ingenuity in Islamic finance. This important segment of Islamic finance has seen a dynamic stream of cutting edge products and structures. Sukuk is distinct in its role as a platform upon which international inter-linkages are fostered. The sukuk market has demonstrated its ability to effectively intermediate funds across borders and thus contribute towards the efficient allocation of funds in the international financial system. On the supply side, it has drawn the participation from corporations, sovereigns and multilateral agencies. On the demand side, it has now become part of mainstream asset allocation strategies for investors seeking greater risk diversification.