Chile cuts customs’ red tape to help exporters face stronger peso

Friday, October 22nd 2010 - 05:42 UTC

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Chile will cut red tape on customs to help exporters hit by a strong peso as one measure to ease the effects of the currency's rapid appreciation, Finance Minister Felipe Larrain said on Thursday.

“This was one of the main measures that we had planned for this week because this is a measure that takes into consideration the exchange rate problem that we are facing,” Larrain told reporters at a customs office in the outskirts of Santiago. “This is not the last measure, we will keep analyzing alternatives.”

Larrain said the move, which was not as strong as many analysts expected, added to tight control over fiscal spending, use of copper savings and offering dollar credits to help exporters whose profits have dwindled because of the stronger peso.

The Chilean peso on Thursday pared some early losses triggered by the government announcement of possible foreign exchange measures. The peso was 0.19% weaker at 485.30/485.80 per dollar.

Chile has not yet followed the steps of other Latin American countries that have intervened in the market to temper their local currencies, which are rapidly appreciating on the back of greater capital inflows.

Investors chasing high interest rates provided by fast-growing emerging economies have swamped these countries with dollars, pushing up the value of local currencies.

Chile's central bank has also allayed market talk of a currency intervention in the short-term.

The Chilean peso has strengthened around 12 percent against the dollar since the end of June, prompting demands for action by exporters hit by rising costs.

Categories: Economy, Latin America.

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Think
Wishing the best for our Chilean brothers but…..

I really fail to see how Chile can manage out of this vicious spiral with only neo liberal recipes like cutting red tape and letting the market regulate itself….

Though...the article mentions “lightly”: “Using of Copper Savings”
Yes.....Do use them…... for good purposes, and remember where they come from………
http://en.wikipedia.org/wiki/Chilean_nationalization_of_copper

The revenue produced by the Chilean Copper Industry, nationalized by socialist president Salvador Allende in 1973 has been the base for the so called Chilean miracle of the last 40 years….
http://en.wikipedia.org/wiki/Chilean_nationalization_of_copper

I trust that multimillionaire Mr. Piñera keeps in mind that he is today, by his peoples will, the President of all Chileans and, as such, he has the great opportunity to demonstrate that the “Right Wingers” of Chile are more and better than just members of an oligarchy model that hopefully never will return…….

Let’s hope he aspires for more than money….
He certainly has enough of it :-)
Oct 22nd, 2010 - 09:58 am 0
Sergio Vega
Think, as always your'r wrong.
The Chilean miracle is due the big changes made furing the pest presidential term of Chile when General Captain Augusto Pinochet Ugarte run the country and let us the new economy that today is the best of Latam, even the 20 years of leftist gvts. trying to destoyed it.
Please, keep you comunist thoughts for your crying country whwere you hadn´t capable leaders to do the good job that you need and put the Argentines to work....
So R.I.P. Argentina
Oct 24th, 2010 - 12:56 pm 0
Think
CODELCO: A magnificent socialist Company created by Salvador Allende. Such a good idea that not even Pinocho was so stupid to destroy.

CODELCO has financed the Chilean economy in the last 4o years.

And rightly so.... The mineral riches of Chile are the property of all Chileans and should be used for the well being of Chileans
Oct 24th, 2010 - 05:51 pm 0

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