NOTE 26 NET FOREIGN EXCHANGE INCOME (LOSSES)
This item includes the income earned from foreign currency trading, the differences arising from converting monetary items in a foreign currency to the functional currency and those generated by non-monetary assets in a foreign currency at the time of their disposal.
The detail of net foreign exchange gains (losses) for the years ended December 31, 2017, 2016 and 2015 was as follows:
| 2017 | 2016 | 2015 | |||||
| MCh$ | MCh$ | MCh$ | |||||
| Gains (losses) of foreign currency exchange differences | |||||||
| Net gains (losses) of foreign currency exchange positions | 131,196 | (30,191 | ) | 75,873 | |||
| Other foreign currency exchange gains (losses) | 1,537 | 1,202 | (1,412 | ) | |||
| Subtotal | 132,733 | (28,989 | ) | 74,461 | |||
| Gains (losses) of exchange rate readjustments | |||||||
| Adjustment to loan to customers | (82 | ) | 14 | — | |||
| Adjustment to investment instruments | (824 | ) | (121 | ) | — | ||
| Adjustments to deposits and saving account | — | 10 | — | ||||
| Adjustments to other liabilities | 1,385 | — | — | ||||
| Fair value gains (losses) on foreign currency hedging derivatives (1) (*) | (87,047 | ) | (19,762 | ) | — | ||
| Subtotal | (86,568 | ) | (19,859 | ) | — | ||
| Total | 46,165 | (48,848 | ) | 74,461 |
(1) Correspond to current earnings related to hedging foreign currency assets and liabilities. Different information is disclosed in Note 23 “Interest Income and Expense” and Note 25 “Net Trading and Investment Income”.
(*) The fair value gains (losses) on hedging derivatives as of December 31, 2017, 2016 and 2015 was as follows:
| As of December 31, | |||||||
| 2017 | 2016 | 2015 | |||||
| MCh$ | MCh$ | MCh$ | |||||
| Fair value hedges | (1,032 | ) | (17,281 | ) | — | ||
| Cash flow hedges | (80,968 | ) | 20,687 | — | |||
| Net investment in foreign operation | (5,047 | ) | (23,168 | ) | — | ||
| Total | (87,047 | ) | (19,762 | ) | — | ||