Chile: The Chilean peso strengthens on rising copper prices
August 1, 2011
On 29 July, the Chilean peso (CLP) traded at 455.9 per USD, which represents a 3.3% appreciation over the 471.1 CLP per USD tallied on the last day of June. Moreover, the peso has experienced a 14.6% appreciation in nominal terms against the U.S. dollar compared to the same period last year. Rising copper prices play an important role in the currency's appreciation, as the peso often takes trading cues from the metal industry. Chile is in fact the world's premier copper producer and accounts for a third of global copper supply. The Central Bank of Chile, as part of its ongoing USD 12 billion currency-intervention program started on 3 January, has already accumulated USD 7.45 billion so far this year, to partially offset fears that the appreciation of the national currency could threaten the competitiveness of the Chilean export sector.