world growth? do all the emerging economies have fiscal room to back a weak scenario, or it has been shrinking after the strong stimulus packages of 2008 – 2009? and there are the local tensions, too. certainly, the climate of political and social unrest is not the most appropriate to confront a further deterioration of the world economy. for the same reason, this scenario imposes more than ever the challenge of building an effective solution for these specific problems, but always safeguarding macroeconomic stability and strengthening our capacity to grow. this is not only about the specific policies we apply, but also about how we resolve our problems. as much as some have trouble admitting – it seems that the trendy thing is to complain about everything – our country is exemplary. in the past few decades, all of us chileans have enjoyed progress like never before in our history. and, granted, there are many tasks ahead, we are a role model for many countries. in this conjuncture we must also set an example resolving urgent and critical problems and continuing building an ever more prosperous country for all. thank you. bis central bankers ’ speeches figure 1 world activity ( * ) ( index, iv. 07 = 100, quarterly series ) iv. 07 iv. 08 iv. 09 emerging iv. 10 developed ( * ) regions weighted at ppp. developed economies include : australia, canada, denmark, the eurozone, japan, new zealand, sweden, switzerland, the u. k. and the u. s. emerging economies include argentina, brazil, bulgaria, chile, china, colombia, the czech republic, hong kong, india, indonesia, israel, latvia, malaysia, mexico, peru, the philippines, south korea, russia, singapore, south africa, taiwan, thailand, turkey and venezuela. source : central bank of chile based on bloomberg, the imf and statistics bureaus of respective countries. figure 2 cpi inflation around the world commodity prices ( annual change, percent ) - 2 - 2 - 4 - 4 u. s. eurozone latin america emerging asia ( monthly index, jan. 00 - sep. 11 = 100 ) emerging europe fao foodstuffs wti oil ( 1 ) regions weighted at ppp. data through august 2011. ( 2 ) cpi includes argentina, brazil, chile, colombia, mexico and peru. ( 3 ) cpi includes china, india, indonesia, malaysia, south korea, thailand and taiwan. ( 4 ) cpi includes the czech republic, hungary, poland, russia

for chile • since the beginning of the process, the cbc has publicly stated on several occasions the benefits of cls and its intention to incorporate the peso to the system. • cls mitigates the settlement risk, through a multicurrency payment versus payment ( pvp ) system with legal certainty, meaning the payments are final and irrevocable. page 1 of 4 central bank of chile july 2020 • moreover, cls improves the liquidity management of the financial institutions, particularly the banks that settle directly into the system, using an efficient multilateral net mechanism. • additionally, due to the high standards of currency eligibility and the efficiency of the operative process of settlement, when a currency is part of cls it gives a strong signal of financial development. at the same time, important international players that only traded if the payment is performed through cls can incorporate the peso into their portfolios, thus increasing market competition. • finally, the cls settlement of the peso will improve the transparency of the currency markets ’ transactions, incorporating over - the - counter transactions into an infrastructure, according to the international recommendations and principles. iv. private sector involvement in the cls system • an important part of the risk reduction and liquidity saving benefits is faced by the financial institutions participating in the system and, therefore, passing through to the rest of the financial markets, and ultimately to the users of the financial products, currency derivatives, and foreign exchange ( fx ) transactions. • moreover, as a financial market infrastructure, cls interacts with other financial institutions, particularly with banks. at cls, banks play different roles, such as settlement member, correspondent or nostro service provider, and liquidity provider. • the timely involvement of banks in the process is essential, considering the start of the implementation phase by the end of this year. in other words, at this stage of the peso incorporation process to cls, it is imperative to define the participation of local banking entities, as a settlement members or nostro services providers. • the current projection is that the peso will go live before the end of the second quarter of 2022. therefore, and given the necessary actions, investments, and transformations to connect to the system, the banks must join during this budget period to carry out the implementation process during next year. v. central bank actions to incorporate the peso • the cbc must also perform significant actions, investments, and modifications of its current operation to integrate the