☀ Domingo Brief — Chile’s New Solar Plant
Each Sunday, take two minutes to catch key stories and opportunities shaping Latin America.
Welcome back to the Domingo Brief! This week, we’re keeping up with Argentinian inflation, Mexican rail lines, and more.
Trivia of the Week
Exactly 40% of you were correct in selecting the Brazilian real as the Latin American currency which turned 30 years old this year! The currency was introduced with the 1994 Plano Real in an effort to end a decade-long inflationary cycle (almost 2500% annual rate in 1993!) and the multiple circulating currencies seen for over half a century. Drawing its name from the pre-1942 currency, the real’s implementation was a necessary condition to end the Brazilian economy's propensity to boom-and-bust cycles marked by persistent inflationary trends, balance of payment crises, and abrupt currency depreciations.
Each week, tune back in for the answer to the previous week’s trivia question. No cheating!
🇦🇷 Argentina’s monthly inflation rate, which had been dramatically slowing from 25.5% in December to 4.2% in May, saw its first uptick to 4.6% in June, ending a five-month streak of slowing prices. While general expectations of inflation continue to be optimistic, supported by drastic deflation over the past half year, this increase presents a challenge to President Javier Milei’s goal of reaching monthly inflation of just 3.8% by September.
Latinometrics: The small increase in inflation coincides with the Central Bank of Argentina’s decision to lower its benchmark interest rate from 50% to 40% in May. However, this increase could subsequently cause them to increase the benchmark interest again in July in an effort to help bring down inflation.
🇨🇱 Chile’s CEME 1 has been officially inaugurated in the middle of the Atacama Desert. The solar power plant, Chile’s largest, has 882K solar panels that in total cover an area of over 435 hectares and will produce enough power to supply 500K Chilean homes. Its innovative technology maximizes energy capture, has an automated panel cleaning process, and reduces water consumption by up to 90% while avoiding the emission of 280K tons of CO2 per year with traditional energy sources.
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