peso settlement into the cls system. • several actions that will be detailed later in this workshop, include extending the operating hours of our realtime gross settlement ( rtgs ) — sistema lbtr — to coincide with cls between 00 : 00 am and 6 : 00 am. • in this sense, the cbc is willing to take all the necessary steps to incorporate the peso and to do business as usual with the peso settlement in cls. page 2 of 4 central bank of chile july 2020 vi. central bank actions to improve the peso convertibility • let me emphasize that cls is an important piece among the actions taken by the cbc to improve the convertibility of the peso in a safe environment, following our mandate to safeguard the local and foreign payments. • last july 3rd, the cbc board approved the release for public consultation of stage two of the fx regulation modernization. this regulatory reform consists of four stages, the first of which was enacted early this year, simplifying the compliance with, and reporting of fx transactions to the cbc. • this second stage will allow transactions in derivative products whose settlements or payments contemplate the physical delivery of chilean pesos. additionally, upon the enactment of this regulation, non - residents will be able to open and hold an account in pesos as well as ask for loans denominated in our currency, whether in the form of mutual, lines of credit, or other. • although these regulatory changes are part of our 2018 - 22 strategic plan, and have an independent agenda of implementation, they are of extreme relevance to the operation of cls. without these amendments, foreign settlement members would not be able to manage their accounts in pesos or have access to the credit lines in pesos, that are fundamental to perform the payment to cls. • conversely, the fx changes should impact on the fx activity involving the peso, increasing the systemic risk of settlement. cls arises as the best - known alternative to mitigate those risks. then, cls is essential in this future fx context. vii. cls and the current situation • lastly, i cannot end my intervention without referring to the covid - 19 pandemic that is sweeping across our country and the world. • as we have discussed in our publications, such as our monetary policy report, the current events will have dramatic effects on financial and economic activity. a contraction in the economy and a rise in unemployment are expected. • financial institutions

from first quarter of 2011, indicates forecast. sources : central bank of chile and national statistics institute ( ine ). bis central bankers ’ speeches figure 9 inflation deviations from target ( percentage points ) u. k. thailand indonesia turkey chile brazil canada u. k. israel peru mexico n. zealand colombia hungary czech rep. poland s. korea south africa australia philippines switzerland sweden eurozone norway israel n. zealand indonesia brazil s. korea canada thailand hungary poland mexico eurozone philippines australia colombia peru sweden czech rep. chile switzerland south africa norway turkey - 2 - 1 - 2 - 1 ( 1 ) harmonized series. ( 2 ) spot inflation at fourth quarter 2010. ( 3 ) inflation projected by march's consensus forecasts. for chile, baseline projection in march 2011's monetary policy report. sources : bloomberg and consensus forecasts. figure 10 incidences on annual cpi inflation ( 1 ) ( percentage points ) - 3 othe r ( 64. 7 % ) fre sh fruits and ve ge table s ( 2, 9 % ) foodstuffs w / o fre sh fruits and ve ge table s ( 21. 3 % ) fue ls ( 5. 7 % ) public utilitie s ( 5. 4 % ) total - 3 ( 1 ) gray area, as from first quarter 2011, indicates breakdown of inflation forecast in baseline scenario. ( 2 ) in parentheses, shares in cpi basket. sources : central bank of chile and national statistics institute ( ine ). bis central bankers ’ speeches figure 11 average forward inflation compensation based on swap rates inflation expectations ees and fos ( * ) ( percent ) ( moving weekly average, percent ) fos one year ahead ees at dec. 11 eee a dos anos fos two years ahead ees one year ahead 3 in 2 5 in 5 1 in 1 ( * ) the fos considers the survey of the first half of the month. only for march, the second half is also considered. source : central bank of chile. table 3 impact on gdp and inflation of a us $ 10 increase in the oil price ( * ) ( percentage points ) fmi ocde pib united states eurozone japan emerging asia - exc. japan china latin america world inflacion - 0. 6 - 0. 4 - 0. 2 - 0. 2 - 0. 8 - 0. 8 - 0. 2 - 0. 4 consenso de mercado pib 0.