Falling U.S. dollar worries Chilean exporters
The U.S. dollar reached new lows against the Chilean peso and other currencies this week, causing worry among Chilean exporters and calls for government action.
As of Sept. 24, the exchange rate was $1 to about CLP 488, the lowest in nearly two years.
The president of the Association of Chilean Exporters (Asoex) called on the government to take steps to protect the country’s export industry.
“We believe that a dollar as low as it is now poses a serious risk to an important part of the effort that has been made for Chilean exporters to internationalize our economy,” Ronald Brown Fernandez said in a statement.
But President Sebastian Piñera said Wednesday that the exchange rate is normal and that the government has no plans to intervene, Reuters reported.
Efforts by the Federal Reserve to boost the ailing economy in the U.S. by adding more stimulus money and keeping interest rates low are contributing to the dollar’s decline, El Mercurio reported.
But the fall could moderate, Nicolás de la Carrera of Forex Chile, told El Mercurio.
The currency worry is not limited to Chile. Brazil and Colombia this week bought more dollars to stem the rise of their currencies, according to Reuters.