Banco Central, Bolsa, Company Visits

What a setting, the board room of the Central Bank with the V.P. Jorge Desormeaux!  What stands out from your participation in his lecture?  Any impression you want to share about the visit to the Bolsa de Valores and your company visits/presentations?

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25 Responses to “Banco Central, Bolsa, Company Visits”

  1. Travis Says:

    The Central Bank was amazing. What an opportunity! Jorge Desormeaux was a great speaker, and I am very thankful for having this experience. After a few days here, combined with these two visits today, I am really getting a feeling for how much Chile is growing economically. It seems that they are very proactive about their economy, and their success is starting to show.

    I think this may be the one day that should never be removed from the trip!

    Our company visit with Fernando of IPA was a great one as well. Very informal, and he was very gracious for all of our help, despite the fact that we think we got more out of it than he did!

  2. Perry Says:

    Our visit to the Central Bank was wonderful. We sat in the board room where the directors meet to decide monetary policy for Chile. The Vice President walked us through how Chile has stabilized its financial markets and grown the economy over the last decade. He was very informative and warm. The day after our meeting the directors were meeting in that room to adjust the interest rate.

    Our company presentation with VVS went well. We had a small team, just Sean and I, and met with Eugenio and his father who are looking at growing their company through an online model. We thought the conversation went well and had a good time getting to know them.

    Because our company meeting was later in the day, Sean and I were able to stop by La Moneda and the art museum underneath. It was a beautiful space. Unfortunately we could not see any exhibits as they had taken down the Diego Rivera and Frieda Kahlo show and seemed to be re-installing the entire museum. We did have a successful visit to the gift shop.

  3. Jaclyn Says:

    This may have been one of my favorite days. I was impressed that not only did the Chilean Central Bank take the time to meet with us but also that the guest lecturer was, V.P. Jorge Desormeaux!

    Specifically, I found Jorge Desormeaux presentation regarding how Chile has been able to stabilize its financial markets and grow its economy to one of the most successful economies in South America, extremely interesting. Also, the room our presentation was in was the same room the board members met the following day to lower Chile’s interest rate.

    After the Central Bank, we were able to tour Chile’s Stock Market. I have had the opportunity to visit the New York Stock Exchange and it was interesting to compare the differences between the two. The one startling difference I noticed was that most brokers in Chile were not on the trading floor they were in offices, while at the time of my visit to the NYSE there were still people trading on the exchanges floor.

    To end the day we gave our presentation to IPA. Overall the presentation went very well and our contact, Fernando, was pleased.

  4. Brandon Says:

    On this day we visited the Central Bank of Chile, where we received a first class presentation from on one of the VPs of the Central Bank, Jorge Desormeaux. I felt like an important decision maker, sitting at the round table where Chilean monetary policy is dictated. The building was phenomenal, and the overall experience was very prestigious.

    Our afternoon visit with Marico from Sonocol was very interesting. Being a professor, Marico, offered an academic , but anecdotal approach to the shipping industry and doing business in Chile. One of the more memorable experiences of the trip was his history lesson of how Sonocol’s shipping vessels are named.

  5. Sophannaka Says:

    I really like the Central Bank visit. It was a good opportunity for me to visit Chilean Central Bank and had a chance to sit in the same room as members of the board. Jorge Desormeaux presented very well and he’s very kind and helpful. It was insightful to learn how Chile grows its economy. To me, it was interesting to know that Chile also followed some models of emerging countries/ Asian countries.
    After that we visited the stock market. I have always imagined that there are a lot of people in the trading room and everyone is busy doing their jobs. But at Chile’s stock market, there was no one on the trading room. Everyone was working from their offices.
    My company visit went well. Our group went to Sonacol& Sonamar to attend a presentation from Mr. Villarreal. He was so kind and nice. He told us many stories about Chile, especially Chile’s history. It was interesting to know that most companies name their ships after important historical events.

  6. Sean Says:

    Our visit to Santiago’s Central Bank in the old financial district goes down as one of my favorite events throughout our stay in South America. It really was an honor that the VP of the Central Bank, Sr. Desormeaux, took time out of his busy morning schedule to meet with a group of students from Texas. He was so “down to earth” and did a great job speaking with us about the history of Chile, the Bank’s primary goal to control inflation, and the future of Chile. Chile appears to be the strongest economy in Latin America and has plans to continue improving education and efficiencies to continue on its upward trend. As I looked around the ornate wood-paneled boardroom, it was pretty neat to know that I was seated in the exact room in which the board would meet just a couple days later to discuss interest rate adjustments and the overall state of the Chilean economy. I’m very interested in economics so this visit was perfect for me.

    It was also neat to see the Bolsa Comercio (or Stock Exchange) of Santiago after leaving the Central Bank. We actually got to stand on the trading floor and take pictures as our tour guide taught us how to decipher the trading board that covered the entire trading-floor wall. Unfortunately for us, there was no trading underway on the floor since all trading can now be completed electronically from personal computers… the visions of stressed out traders screaming at each other and trading slips raining down on the floor are a thing of the past here at Bolsa Comercio de Santiago.

    Time and time again I was amazed at the friendliness and hospitality of the people we met with in Santiago. Fortunately for us, they also spoke excellent English, so communication was quite easy. Before our tour guide at Bolsa Comercio began her presentation, she asked us to excuse her English mistakes as she had not practiced her English for 6-7 years… there was no need for her to apologize for her English… it was extremely good. I only wish my Spanish was at that level. 🙂

  7. Shadi Says:

    What I appreciated most about the trip is the amazing opportunities we had to certain companies and people, such as the VP of the Santiago’s Central Bank, Sr. Desormeaux. He was so kind and gave a very well detailed presentation of the Chilean economy, its challenges and where it was headed in the future. It was really cool that we got to sit in the very room and chairs that such high figures would be seated in the coming days to determine the new interest rate and make significant decisions about their economy. I am still shocked and almost humbled that the VP took time out of his guaranteed busy day, to meet with us. A real pleasure.

    Afterwards, we had the chance to visit the stock exchange. I expected it to be like the US with people everywhere and papers flying. Instead, there were only computers. All transactions were done remotely and recorded on the big board in the room.

    Our company presentation was with Club Deportivo. I think we all had misconceptions on the size of the club. As we drove through the never-ending tennis courts to the meeting, I realized just how badly we underestimated the size. The meeting went extremely well and we ended up talking for a few hours before they kindly gave us a tour of the facilities. This was better than any country club I have ever seen in the States! They even have a roller skating club! They have facilities and clubs for any sport you can think of and the grounds are so clean and well taken care of. Judging by the fact that we were there from 4 till almost 10pm, I can only assume that they enjoyed our meeting as much as we did.

  8. Edyth Says:

    The visit to the central bank of Chile was very insightful as it gave us a lot of economic background information about Chile. It’s amazing to me that the the V.P. Jorge Desormeaux, would take time out of his busy schedule to talk to us. I also thought it was pretty cool that we had our meeting with him in the same board room that the Board of Directors meet to decide their fiscal policy.

    Our company visit to CDUC, was also very good. I was actually looking forward to hearing more in person about CDUC, what their goals were, what they were trying to achieve. I think to an extent, learning as much as we did about the club prior to our arrival was hard. After their lecture, we gave our feedback and recommendations on how well UT has been able to manage its brand. I was very impressed with how the group was able to adapt our presentation and focus on key things that the client needed based on their presentation. Overall, I believed that the CDUC team really liked and appreciated our reccommendations. It would be great to see how much of our ideas they successfully implement in the next year.

    We also found a restaurant today called Piola’s. Great Pizza…. Yum!!!

  9. Noriyuki Says:

    Visiting the central bank and the stock exchange was really helpful in understanding the economies of Chile. The lecture from VP was well organized and very informative to understand the Chilean economic standing in depth.

    Company visit afternoon was totally different from the morning session. Our team visited Concha y Toro, the one of the largest winery in Chile. After company presentation, we went on a tour, of course including wine tasting. Since Concha y Toro is very famous and popular back in Japan, I am really proud of having visited the company outside normal winery tour. I really appreciate this visit.

  10. Byong Says:

    Great sleep and very much refreshed to start the day.

    Never been a big fan of central bank, I was a banker and had to send all kinds of reports to them, but today’s visit was very informative and I really enjoyed the building and the paintings??? in the bank.

    But today’s highlight for me was the visit to Concha y Toro winery. Of course it was all business for our Casa Lapostolle group, so we had to tour the beautiful winery and taste different kinds of wine in preparation for our project. So true.
    Never knew that Concha y Toro was such a big company, and “C~ El Diablo” wine was theirs. If you have the chance do try “Don Melchor”, a bit pricey but one of the best I have ever tasted.

    After we got back, we openned another bottle, and did some finishing touches on the project to get ready for Casa Lapostolle.

    So everyday it seems to be wine, pisco, wine, pisco…I love Chile.

  11. Sarah Says:

    Today’s visit to the Central Bank was another highlight for me. As was the case several times, people were so appreciative of our interest and willing to give us such up close and personal looks at what they do. The Central Bank and Stock Market were not exceptions.

    At the Central Bank, the vice president presented a very interesting overview of Chile’s progression to become the most developed economy in South America. I was an International Economics major as an undergrad, so his presentation was right up my alley. He was also so open to answering all of our questions, and all of this just a day before he and the rest of the board had a very important meeting regarding the interest rate. In addition, the board room we were in was amazing and you definitely felt a sense of power just being in there.

    Next it was on the to the Stock Market. We watched an informational video on financial markets in general and the Chilean Stock Market. Our guide here spoke great English (despite what she said) and did a great job of answering all of our questions. After the video we took a tour of the actual trading floor. The room was beautiful, but empty. Basically now it is just a show room, and most of the actual trading is done through software and the traders in their offices.

    Finally our team headed back to Universidad Catolica for our presentation to Fernando Carrasco. The presentation went really well and he found our research and analysis to be helpful. I felt that our discussion with him was enhanced with our newfound knowledge on the shipping industry!

  12. Chris Says:

    Wow! Are you kidding me, we get a presentation from the VP of the Central Bank?
    Jorge Desormeaux is extremely gracious and does not seem rushed at all. The presentation is FANTASTIC. This was the best learning experience of the whole trip. I thoroughly enjoyed the lecture about Latin American economies. He has some very insightful points about what makes Chile different, and what work is still underway. I hadn’t explicitly thought about how important rule of law is for an economy. The presentation left me with much to think about. Outstanding.
    Gobs of avocado on my sandwich again…love it!
    Out meeting with Fernando from IPS goes well. While I see that we have learned more than he has, I begin to appreciate that maybe that was the point all along!

  13. Andrew Says:

    First of all, I dont know how anyone wears suits in Santiago. It was great shorts and t shirt weather, but a full suit was pretty rough. Much respect for the business professionals of Santiago and their ability to stay cool.

    It was a great experience to visit the central bank and understand why Chile is such a business leader in South America. Jorge offered great insight into why their economy has been so stable, and it was interesting to see how they managed to stay debt free.

    Our IPA presentation to Fernando was very informal and it was nice to sit around a table and just discuss the strengths/weaknesses of his proposal. He was very interested in the weaknesses we had identified and hopefully he has the opportunity to explore what we discussed further. We also assumed that it was Chilean custom to end the meeting with a beer, so Fernando was more than happy to continue discussions of the IPA project over a beer down the street.

  14. Liliana Says:

    The presentation by V.P. Jorge Desormeaux provided a great opportunity to see in actual statistical figures how Chile has been growing throughout the past few decades. I was surprised to see that Chile, a Latin American country far away from Asia, was implementing some similar policies as Taiwan did in the past. In hindsight, it shouldn’t be too unexpected since both countries are highly dependent on their imports and exports. Also, the presentation was a great demonstration of Chile’s dedication and achievement in pursuit of free market economy.

    The company visit in the afternoon was quite an experience…Mr. Villarreal, our presenter, was such a good story teller! Besides his presentation about company business strategy, he told us about the amazing battle won by Chileans in Valdivia, which is almost like the famous Trojan War. Anything about business? Of course, we learned about the importance of identifying the true enemy and the true alliance in doing business!

  15. Paulo Says:

    I felt honored to watch a presentation about Chile’s economy given by Chile’s Central Bank Vice President in the room where the most important decisions about the chilean economy are made. This was an unique opportunity.

    On our visit to the stock exchange I was particularly impressed by the effort our guide put into given the best experience possible. I think she was a little nervous at first but she did a great job.

    After lunch me and the Casa Lapostolle team headed with Diego to Concha y Toro winery to have a first taste of the wine industry in Chile. Ita was great to know the instalations of such a famous winery and to learn more about the industry in Chile and it’s impact worldwide. It was also nice to learn about the legend of the Casillero del Diablo.

  16. Vikas Says:

    Our presentation for CDUC went fairly well today. As soon as we arrived they made an hour long presentation about their company. Our team was fairly flexible in shifting some of our recommendations and ideas based on the information CDUC presented. The presentation itself was a discussion that lasted over an hour. We were happy that they received our ideas well and we were also passionate about their success. It was one of my favorite activities during the trip.

  17. Eunseok Han Says:

    It was so honorable to listen to the lecture at the board room of Banco Central. The lecture by the vice president of the central bank is one of the best parts of this journey. With the help of his lecture, I could view not only the economic status of Chile, but also the whole South America. I figured out that the current outstanding development of Chile is definitely based on well planned fiscal policy of the government and independence of the central bank. One of the lessons from the vice president is that if a country wants to be well developed, it should focus more on persistent macro economy stability and integration into world economy than anything else. The fundamentals of Chile are also excellent that rules of law, financial regulation, antitrust legislation and framework for private sectors are so well established.

    The stock market is conveniently located from the central bank, less than a 10 minute walk. I could see a big picture of the Chilean stock market through attending an introduction lecture and touring around the stock exchange building.

    In the afternoon, we also visited the Sonocol. Sonocol has been grown steadily in the pipeline business. The lecture from Mario is somewhat different from the VP of Banco Central. Mario focused on more detailed facts and figures of business circumstance in Chile with his hands-on experience in the industry. He mentioned not only about positive aspects of business circumstances in Chile but also explained the things that should be improved, which helped me a lot to understand the macro and micro business situation in Chile.

  18. Hikaru Says:

    Central bank is really precious experience for me. In Japan, I had no chance to see a meeting room which holds regular committee. Lecture from Vice President is well organized and helpful for me to understand history and current status of Chilean Economy. As to the stock exchange, this is almost same as the Japan and U.S.A. I asked whether they have a special market for startup companies, such as NASNAQ. Her answer is No. I am wondering how venture companies in Chile exit their investments.
    After this, we visited Sonacol and took a lecture from Prof. Villareal whose specialization is economic energy. Most important lesson for me is that Chile depends of oil and gasses from foreign countries.

  19. Summer Says:

    Sitting in the board room at the Central Bank was an experience to say the least. Especially since the next day they lowered the interest rate like 2.5% if I recall! I don’t have a financial background and all I know about economics was from Econ last semester. I tried to draw parallels to our Fed. Jorge’s presentation was really interesting, though was a bit too many charts and I was trying to just get the big picture out of it. He was so articulate and must have studied in England or the States because he had incredible language skills. Visiting the stock exchange was pretty funny since everyone was at home working remotely on their laptops. While the stock market is still pretty new to me too since I didnt know much about it till recently, I found this smaller one with around 30ish brokers very interesting.

    In the afternoon, my team was lucky enough to get to go to Concho Y Toro for a tour of the winery while the rest of the teams did their company visit. We took a LONG ride on the Metro there, but it was well worth it. We had a presentation to start that gave a lot of info on Chilean wine exports, and then took a tour accompanied by tastings along the way. The most memorable part of the day was the tour of the Casillero Del Diablo cellar. The tour guide took us down the stairs to the cellar and then left us there and closed the big doors. I knew something was going to happen, and the show begins, lights off, mysterious voice telling the history and legends behind the great wine:

    The story goes… back in the days when the winery was really just a private family business, they had a problem with bottles of wine disappearing… the staff was stealing their private reserve. So the locals, being a very superstitious and religious bunch, were fed a story through the “grapevine” that the Devil lived in the cellars, and had been recently seen. Since the rumors of the Devil inhabiting the cellars, the leakage of bottles ceased, and so became the name given to the wine in that cellar, Casillero del Diablo (Cellar of the Devil), and the legend lives on.

    The special light and audio effects give way to the unveiling of the “Diablo” hiding out among the most revered bottles in the cellar. I got some awesome pictures of El Diablo.

    After, Byong Joon, Noriyuki, Paulo, Chul, Diego and I went to their little tasting area where we ordered a lot of wine, cheese and empanadas. The food and wine were delicious, and we had a ton of fun together 🙂 We all bought a few bottles to take back, and had to lug them on the metro home. Luckily, there was an express train so we got home in half the time!

  20. Kentaro Says:

    The presentation at the board room of the central bank in Chile helped me understand the over view of the economy in Chile. The V.P. prepared a lot of slides in his presentation and all of them were to explain its stable economy. I felt that window at the first floor of the bank looked like the ones in the central bank of Japan but the atmosphere of the board room was more open than Japanese one.

    In the afternoon, I visited Sonacol, energy transportation company in Chile. From the presentation, I felt that the business in Chile was greatly influenced by global companies (in this case, U.S. company). According to the presentation, only due to one U.S. energy company who wanted to keep their investment only in pipeline business, Sonacol needed to split their business into pipeline business and shipping business regardless Sonacol is major player in Chile. I thought from this presentation that they might be lack of fund or skills to compete/cooperate with global companies in equal status.

  21. Yung-Chieh Says:

    Our visit is the best experience for me in Chile. The VP gave us a brief but very informative presentation. In this semester, I take a course taiking about financial market and I can examine Chile’s economic policy is what I learn in class. Besides, VP also talked about other emerging countries in Asia. It is very interesting to hear his comment on Asia counties’ emergence.
    In the afternoon, we visited a company to know about energy industry in Chile. The presenter was not the one who supposed to present to us. However, he did his best to give us an introduction of enery industry and I apprecited his effort. In the end, he talked about what we need to keep in mind when we do business in Chile. That’s surprising!!!

  22. Jason Says:

    Yes, Yung-Chieh. I also thought that the lecture Jorge Desormeaux gave us was just like an extension of Louis Spellman’s class.
    It is a very valuable experience for me sitting in the boardroom of the Central Bank and understanding the monetary policy of a nation through the VP of the Central Bank. The lecture was very informative and gave us a neutral view of the past development and future outlook. (I think it is extremely difficult as he is the VP of the CB) The trip of the Stock Exchange, the Bolsa Comercio, was also very good. The whole transactions were made by electronic systems now, though, we still can catch the sense and ambiance of how the bidding processes were going on in the main hall.
    My company visit to Sonacol & Sonamar was quite interesting. I totally forgot our objective of this company visit was to learn more about the energy industry in South America. Professor Villarreal was very kind and friendly, and I can see the effort he made to let us know everything about the country, including the history of Ester Island and Valdivia War. The lecture turned out to be an endless history and story-telling class, but I really enjoyed it.

  23. Gaurav Says:

    This was the longest day of the trip, and hence the longest blog. We started the day with a visit to the Central Bank of Chile called Banco Central. We were warmly received by bank staff. To be addressed by the Vice President of the Banco Central, Mr Jorge Desormeaux, was a testimony to the fact that the bank considered us a very special group. He told us that the Banco Central is run by 5 Board members, who are polled and nominated by the president and approved by the Senate. They are appointed for a term of 10 years. He gave a very interesting comparison of Chile economy vis-a-vis other Latin American economies. It was impressive to note that how Chilean economy has leapfrogged other Latin American economies in the past 15 years. He highlighted the importance of strong monetary policies in today’s economic crisis. He emphasized the importance of pursuing open economic policies and how the import substitution policies through tariff protection during the 1930 economic crisis made the economic recovery very difficult. He mentioned that the first generation of reforms were introduced in Chile in 1970s. The second generation of reforms were introduced in 1980s, which included modernization of public sector, reform of judiciary system, reform of regulatory system and reform of public education and healthcare services. As a result, Chilean economy grew at an average rate of 6.5% from 1985 to 2000. He stressed on the point that the large income distribution results from failure to provide good quality public education to the people. He also talked about the Chile social services and how they are well targeted to the lower strata of the population. Chile is one of the few countries in the world that has negative public debt, even compared to most other developed countries in the world example US. He highlighted that the Banco Central actively targets inflation at 3% and accepts 1% below or above the target. He mentioned 3 very important ingredients in robust and sustained economic development: Rule of Law, Property Rights and Low corruption.

    In the afternoon, we visited the Bolsa de Comerico de Santiago, the main stock exchange of the country. We were given a presentation about the trading activities at the stock exchange. The presenter highlighted how the trading scene has changed at the trading floor in the last 1 years with the introduction of digital trading. All the brokers now trade from their own computers at their own convenience without having to visit the trading floor and shout their bids, as was the norm about 15 years back. Later, she gave a short tour of the trading floor and showed us how the newly transacted price and volumes are reflected on the digital board. There were 32 computer terminals on the trading floor, reflective of the number of independent brokers there are registered in the stock exchange. The trading floor also had the electronic board where the transactions were listed prior to introduction of computers and the telephones next to the electronic board, which were used by the brokers to receive calls from the public about their stock bids. We took individual and group photos at the trading floor.

    Next, different team went to their respective companies for presentations. Being part of FMC group, I went to Chile Oil and Gas distribution company called Sonacol. The presentation was given by a part time staff and university professor – Mr Mauricio Villarreal. He was an engineer by degree with 20 years of work experience in Energy. His presentation was in Spanish and because of his lack of skills in English language, he struggled to translate most of the presentation. However, he made a very honest attempt to share the details about the company and its operations with us. He mentioned that there is 450 km of pipeline in Chile. Sonacol, which is an oil and gas distribution company, is the largest in Chile. The sister company called Sonamar transports oil using 5 petroleum ships. He talked about the long 4500 km coastline of Chile and how the country can generate enormous amount of hydro electricity through sea waves. However, due to thefts of hydro generating equipment at the coast, it becomes difficult to implement it. He also mentioned that Sonacol shares 5 oil pipelines with Argentina but there is no supply because the oil resources in Argentina have dried up due to the Argentina economic crisis. We concluded the visit with a quick handshake with the General Manager of the company.

  24. Erin Says:

    The trip to the Central Bank and Stock Exchange was a nice walk and a very packed subway ride from the hotel. A bunch of MBAs in suites disappearing off the streets into what could only be described as an oven of a subway tunnel. As part of the group boarded the first train, subway workers yelled over and over what I assume was something along the lines that this train was full. Although the words they yelled didn’t make sense, the message was fairly clear,….so I thought. At the last minute, one more MBA tries to squeeze onto the train. The image of the McCombs backpack being squeezed tight between the two subway doors still cracks me up. I wish Maksim had caught that one on camera. I am still wondering, however, if the doors had shut on an actual body part, would it have hurt?

    What an honor, though, to receive a presentation from the Vice President of the Central Bank of Chile. I can’t believe that someone so important would take time to meet with a bunch of Texas MBAs. This was a very high quality visit and very interesting as well. I was surprised to find out how much the interest rates had been cut since December of 2008. Multiple interest rate cuts had brought the rate from 8.25% to 7.25% to 4.75% by the beginning of March. The last cut that was decided just a day after we left brought it down to 2.25%!

  25. Hassan Says:

    I seriously enjoyed this visit. I had no clue that Chile was so well positioned economically. It has a lot of challenges around education and I have great concerns around its ability to continue drive economic growth without all inclusive education, which can sometimes help create magnificent solutions to very common problems; however, with all that said, I would definitely invest in Chile. The wall street of Chile seemed a little too laid back; however, nobody has any money right now so go play golf 🙂

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