MercoPress. South Atlantic News Agency

Chile: ASEXMA urges government to act on low dollar

After the U.S. dollar hit a new low last Friday, Patricia Pérez, president of the Export Manufacturing Association (Asexma), warned of the serious threat posed to Chile's exporters and manufacturers.

The low of CLP$520.5, a mark not seen since May last year, is nowhere near "the 580 to 600 pesos per US dollar needed for exporters to have reasonable profits," said Pérez. "The big companies have the resources to withstand prolonged lows, but medium-sized exporters face the difficult decision of either closing factories or markets." The export, fruit export and manufacturing sectors have all called on the government to loosen regulations on the private pension funds (AFPs) to allow them greater leeway to invest their dollars abroad (ST Apr. 19). The AFP invests millions of dollars each year, and foreign investment of their U.S. dollars would increase the value of dollars remaining within the country. By Mike Hager The Santiago Times