What are the distinctions between CLF and CLP in Forex trading?

So I’ve been familiar with the Chilean Pesos (CLP) for a while now, you know, the currency you use if you travel there or buy something from Chile. But recently, I’ve stumbled upon something called Unidad de Fomento (CLF) and I’m a bit confused. What’s the deal with this second currency?

From what I’ve gathered, it seems like CLF is constantly adjusted so its value stays consistent day-to-day (like it always buys you the same amount of gold?). It appears to be primarily used for investments and real estate. Beyond that, I’m not quite sure. Can anyone shed some light on this for me?

CLF, or the Chilean Unidad de Fomento, is a currency used in Chile (CL, CHL) and is represented by the symbol UF. It is an index of funds used in Chile’s credit industry and its value is adjusted for inflation. CLP, or the Chilean Peso, also used in Chile (CL, CHL), is represented by the symbol Ch$. It is divided into 100 centavos. The exchange rates for CLF and CLP are updated by different authorities: CLF by the Central Bank of Chile, and CLP by The International Monetary Fund. The conversion factor for CLF has 7 significant digits, while CLP has 6 significant digits.