It is a non-circulating currency;[1] the exchange rate between the UF and the Chilean peso is constantly adjusted for inflation so that the purchasing power of the Unidad de Fomento remains almost constant on a daily basis during low inflation.

It was created on 20 January 1967, for the use in determining the principal and interest in international secured loans for development, subject to revaluation according to the variations of inflation.

It has become the preferred and predominant measure to determine the cost of real estate, values of housing and any secured loan, either private or of the Chilean government.

Individual payments are made in Chilean pesos (the country's legal tender), according to the daily value of the UF.

Historical values of the UF as of 31 December each year (unlike below, in Chile numbers are written with a decimal comma and a dot to separate thousands):