MercoPress. South Atlantic News Agency

Chile's international reserves steady above 16 billion US dollars

Chile's international reserves closed 2005 at 16.193 billion US dollars with a December increase of 938 million US dollars, reports the country's Central Bank.

Deposits from the financial sector helped reach the number. In 2004 international reserves totalled 16.016 billion US dollars.

Monetary aggregates also experienced significant changes with money circulation during December increasing 8.4% while money in the private sector (M1A) expanded 9.3%, which represent 16 and 11% variations in twelve months.

Chile also managed an important 9.236 billion US dollars trade surplus in 2005 with exports totalling 39.536 billion US dollars (23.5% increase over 2004) and FOB imports 30.300 billion US dollars (31.7% jump compared to 2004).

Chile's to ten export items are cooper with overseas sales of 17.989 billion US dollars; followed by molybdenum with 2.96 billion; salmon 1.5 billion; wood pulp 1.158 billion; wines 922 million US dollars; plywood 706 million; grapes 683 million; methanol 585 million; fish meal 454 million and apples 302 million US dollars.

The European Union, United States and Korea were responsible for most of 2005 trade increase although China has become Chile's second most important trade partner.

However Hugo Lavados, head of ProChile cautioned that the largest trade increase last year was in the so called "traditional" items.

Nevertheless it's the non traditional products that are showing a steady expansion in the last six years. In 1999 non traditional exports totalled 7.315 billion US dollars but by 2005 they reached 12.780 billion, representing a 19% increase over 2004.

Besides, in 1999, 3.788 different products were exported to 174 markets involving 6.022 companies. In 2005 the number of products was 3.900, markets 184 and 6.900 companies.

But in spite of the trade boom, the Exports Exchange Rate Competitive Index in 2005 dropped 7.6% according to the Chilean Manufacturers and Services Exporters Association, Asexma.

The index considers a basket of currencies which concentrate 90% of Chile's exports. The index last December ended at 96.7 points compared to 104.7 at the end of 2004. During 2005 the Chilean peso appreciated 10.7% against the US dollar.