MercoPress. South Atlantic News Agency

New low record for Chilean peso

The Chilean currency opened this Monday with a new record low, 750 pesos to the US dollar, after a week of constant depreciation of the peso. Last Friday September 20th the US dollar was selling in Santiago for 743 pesos, a 1,4% jump in one just week since market operations had begun at 729 pesos to the US dollar Monday September 16th..

Although Chile virtually came to a standstill beginning Wednesday September 18th with the two days Independence celebrations that continued on Friday, analysts in Santiago indicated currency volatility in Chile is directly related to overseas events. The growing threat of war in Iraq with possible rocketing oil prices, and negative signals from the New York stock exchange, plus the Brazilian situation, "has seen banks and corporations hedging in the US dollar".

However in spite of the turbulence the Chilean Central Bank, so far, has not participated in the currency market, as in other opportunities, according to Economy Minister Jorge Rodríguez.

"There's a slight nervousness, but once overseas uncertainties gradually become normal, those who've been speculating with US dollars are going to loose quiet a bit of money", forecasted Mr. Rodríguez.